PHOTO BY GIOVANNI GIANNONI DVF’S RESPONSETOMARC/2RYANDVF’S BERMANEXITSARMANI/2 Ring Bearer For moretailoredlooks,seepages14and15. cotton suitembroideredwithacircleofsilkknots. degree ofartsiness.Here,hissporty with theperfect that withhisgutsyyetunderstatedcollection— Strength insubtlety. NarcisoRodriguez managedjust exchange, overthelengthofcontract. million euros,or$276atcurrent to generatewholesalevolumeof200 and men’scollectionhasthepotential a 10-yearpact,expectthatthewomen’s volume leagues.Thepartners,whosigned propel theJapanesedesignerintobig- manu facturer SINVSpA,isdesignedto collection, licensedtoItalian Coming Soon.The“supercasual” most affordableofferingyet,called stampede. contemporary like Yohji Yamamoto arejoiningthe — PARIS By MilesSocha To SecondLines Launch Designer Joinsthe Rush Yohji’s ‘ComingSoon’: Yamamoto islaunchinghisyoungest, Women’s Newspaper • Daily Wear Retailers’ •The Daily Even esoteric designers Evenesotericdesigners WWD Beauty See

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12 FRIDAY September 14,2007 • $2.00 2 WWD, FRIDAY, SEPTEMBER 14, 2007 WWD.COM Ryan Berman Leaves Giorgio Armani ridget Ryan Berman has resigned as chief ion show at the Neiman Marcus fl agship and as WWDFRIDAY Bexecutive of Giorgio Armani Corp., WWD has guest of honor at the annual Crystal Ball Charity Beauty learned. Luncheon, has said America is a prime focus Ryan Berman joined in April 2006 from Apple for expansion. As reported in May, over the next FASHION Computer Inc., where she was vice president three years, Armani plans to invest up to $100 Jackets were de rigueur on the spring runways, making for slouchy-chic and chief operating offi cer of retail stores. Prior million to increase his company’s U.S. wholesale 14 looks with an air of confi dence. to that, she worked at Polo Ralph Lauren Corp. and retail operations, which account for 25 per- for 12 years, with her last position being group cent of its worldwide sales. president of retail. She also held executive po- Among the steps Armani plans to take in the GENERAL sitions at Allied Department Stores, Federated U.S. over the next three years are opening a Yohji Yamamoto is launching his youngest, most affordable offering yet, Department Stores (now Macy’s Inc.) and May 47,000-square-foot, multifaceted retail destina- 1 called Coming Soon. Department Stores Co. tion on New York’s Fifth Avenue in fall 2008; Giorgio Armani SpA is expected to announce opening additional Giorgio Armani, Emporio During trading Wednesday, Groupe Clarins’ stock spiked more than her departure today. Neither Ryan Berman nor Armani and A|X Armani Exchange stores; reno- 2 8 percent amid resurgent speculation that L’Oréal may bid for the fi rm. Armani offi cials could be reached for comment vating existing Giorgio Armani shops as well as BEAUTY: Prestige Cosmetics is joining the ranks of L’Oréal, Neutrogena late Thursday. The reasons for her departure 155 Giorgio Armani and Armani Collezione wom- 10 and countless others annexing mineral formulas to the assortment. could not be learned, although sources said she en’s and men’s shops-in-shops in U.S. depart- was departing to pursue other interests. ment stores; launching an e-commerce site this Bulgari SpA posted double-digit profi t growth in the fi rst half and forecast Ryan Berman was brought on to help drive fall; relaunching Armani Jeans, the sportswear 11 continued sales momentum for the rest of the year. Armani’s growth in the U.S. Giorgio Armani, and denim line, and expanding his accessories, After placing 16 of its brands under review on July 11, the $4.99 billion who only last week was in Dallas to hold a fash- fragrance and skin care collections. 11 Liz Claiborne has settled the fates of its seven moderate brands. Shareholders are pushing Dillard’s Inc. to release sustainability reports on 19 environmental, social and governance performance. Classifi ed Advertisements...... 19 DVF Reaches Out to Marc To e-mail reporters and editors at WWD, the address is fi rstname. [email protected], using the individual’s name. By Rosemary Feitelberg — it’s a nightmare.” Vera Wang and many others, in- That said, von Furstenberg cluding young designers, rely on WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. irst thing Thursday morn- did allow that the timing of this them, von Furstenberg said. “If VOLUME 194, NO. 58. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one Fing, Diane von Furstenberg month’s Jewish holidays is what the dates get earlier and ear- additional issue in January and November, two additional issues in March, May, June, August and December, and three phoned Marc Jacobs to plead really unraveled the show dates. lier and Italy cannot ship on additional issues in February, April, September and October) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by with him to continue to show Nevertheless, she insisted inter- time, it’s going to be a problem. Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive in New York, but said she un- national camaraderie will be es- Everyone will not be able to go Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human derstands his frustrations with sential going forward. show in Paris,” she said. “This is Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return the earlier-than-usual schedule “This is not just about dif- a global industry. We all depend undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: this season. ferent countries. This is a mas- on each other, but we have been SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA The call came on the day sive industry worldwide,” she pushed in and in and in.” 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit WWD published a front-page said. “We should all push back That said, American design- www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new story quoting an angry Jacobs and be a little more respectful. ers may need to fi nd alternative subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production attacking critics of the late start Everyone is overwhelmed with resources if Italian companies correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other of his show Monday night. In his too many shows. But everyone cannot ship on time, she said. Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list remarks, Jacobs threatened to means well. We have to mean The CFDA president sur- available to carefully screened companies that offer products and services that we believe would interest our readers. move his show to Paris. well. But we have to look at the mised that, in terms of sched- 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, As president of the Council of industry as a global force.” uling, it would be better for OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, Fashion Designers of America, The New York schedule being Jacobs, who already shows BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED von Furstenberg also said she moved up “little by little” has his Louis Vuitton collection in 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 will call on her European coun- made it very diffi cult for design- Paris, to continue to show his DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY terparts to make more of a uni- ers, especially those who rely signature women’s and men’s A SELF-ADDRESSED STAMPED ENVELOPE. fied effort in scheduling the on Italy for fabrics. Most Italian collections and his Marc by shows. To that end, once their mills shut down in August for Marc Jacobs line in New York. respective fashion weeks are the summer break. While Jacobs complained about wrapped up, she plans to ar- “I understand Marc’s frustra- the show schedule this season in range a meeting with British tion. I just wanted to call him an interview with WWD, he tra- Quote of the Week Fashion Council chairman Stuart to beg. I wanted to tell him how ditionally has shown the second Rose and chief executive offi cer important Marc Jacobs is in the Monday of September for the Hilary Riva, the Italian Fashion American fashion industry,” she last several seasons. Chamber’s Mario Boselli and said. “At the end of the conversa- But his departure would I can’t believe I’m living this life. the Fédération Française de la tion, he said if the dates work out ultimately be detrimen- “ ” Couture’s Didier Grumbach. so he has things in time, he will tal to American fashion, von — Ralph Lauren “I will ask for a special meet- show here. He’s pissed right now. Furstenberg said. “He repre- ing. I think that it’s imperative,” He really isn’t a prima donna.” sents so much in American fash- von Furstenberg told WWD. “To Italian industrialists should ion. It would be really horrible come back from Labor Day and consider how much American to lose him….I am ready to beg to go right into fashion week designers like Jacobs, Anna Sui, in front of his pavement.” In Brief ● OLD NAVY CFO: A Gap Inc. spokeswoman confirmed that John Luttrell will join Old Navy as chief financial officer effec- Speculation Surrounding Clarins Intensifi es tive Oct. 1, assuming responsibility for the finance and real es- tate divisions. Patti Johnson, who preceded Luttrell as cfo and By Jennifer Weil pointing numbers in the recent past. The trend executive vice president, has left the company. Old Navy oper- continued Thursday, as the company reported a ates 1,034 stores in North America, which generated $1.6 billion PARIS — A tempest in a teapot. 12.4 percent drop in net profi ts for the fi rst half. in net sales in the second quarter of this year, according to com- That’s how the analysts queried view resur- The death of Clarins founder Jacques Courtin- pany reports. In his new capacity, Luttrell will report to both gent speculation that L’Oréal may bid for Groupe Clarins in March added fuel to the rumor mill, since it Dawn Robertson, president, Old Navy, and Sabrina Simmons, Clarins. was well known he opposed the sale of his company. executive vice president and acting cfo of Gap Inc. The dual re- During trading Wednesday, in the run-up to In April, his son, Olivier Courtin-Clarins, who porting structure is normal for Gap Inc.’s brands. Luttrell most Clarins’ profi ts announcement Thursday, the com- is Clarins’ vice president of research and develop- recently served as executive vice president and cfo of The Wet pany’s stock spiked more than 8 percent. It closed ment, confi rmed the company is not for sale. “They Seal Inc. Prior to that, he held finance and operations positions at 60 euros, or $83.28 at current exchange, up 7 are rumors,” he told WWD at that point. “There is with Cost Plus Inc., where he also was cfo, Bugle Boy Industries percent versus the prior day’s close. no change in capitalization. There is no need to Inc. and Midway Airlines Inc. “I’m delighted that John is join- “The market’s so jittery at the moment,” said sell. The company remains run by my brother and ing Old Navy. His strong retailing background and financial one fi nancial analyst, who requested anonymity. myself. There is no strategic change.” acumen will prove invaluable to Old Navy’s leadership team That analyst believes the market had responded He was referring to his brother Christian, who as we continue to focus on stabilizing Old Navy’s business and to a confl uence of events. is Clarins’ president and chief executive offi cer. improving the brand’s performance,” said Robertson. According to sources, broker Oddo Securities The family controls 65.1 percent of the company’s published Wednesday a report on L’Oréal in which capital and 78.6 percent of its voting rights. ● NEXCEN AND LI & FUNG PARTNER: NexCen Brands Inc. it said Clarins would make an ideal prey. Oddo On Thursday, Pankaj Chandarana, Clarins’ fi - is partnering with Li & Fung USA to manufacture and distrib- Securities would not release the report. nance director, would not comment on the recent ute The Athlete’s Foot apparel, which NexCen said in June it The analyst also believes the stock spike speculation. Neither would a L’Oréal spokesman. would launch. The first two Athlete’s Foot collections in the stemmed from the fact that L’Oréal executives have The subject of Clarins’ possible takeover re- line are performance athletic attire, Taftec and Track & Field, mentioned a desire to make either a large acquisi- mains a perennial market favorite. set to hit stores in the spring. Li & Fung will manage the sup- tion or a couple of medium-sized ones (the catego- “The listed European leader in prestige skin ply chain from the development stage through distribution. ry into which Clarins would fall). Plus, the analyst care has been seen as an obvious and attractive Financial terms of the agreement were not disclosed. said, Clarins has come out with somewhat disap- Continued on page 19 DAISYMARCJACOBS.COM

irina photographed by juergen teller

THE NEW FRAGRANCE FOR WOMEN BLOOMINGDALE’S 4 WWD, FRIDAY, SEPTEMBER 14, 2007

The Beauty Report WWD.COM

Donna Karan Tibi Hair by Guido Palau for Redken Hair by Kevin James

My Pretty Pony It’s classic for a reason — whether Milly by Michelle Smith Rodarte Hair by Kevin Ryan pretty and polished or rough and Hair by Odile Gilbert ready, the ponytail is a runway staple. (Honorable mention goes to buns — ubiquitous on runways and ballerinas alike.) Here, how hairstylists interpreted these looks for the spring 2008 shows in New York. Compiled by Julie Naughton

Diane von Furstenberg Hair by Frédéric Fekkai

Monique Lhuillier Hair by Kevin Ryan

Michael Kors Oscar de la Renta Vera Wang Hair by Orlando Pita Hair by Orlando Pita Hair by Orlando Pita

Carolina Herrera Hair by Orlando Pita for T3 PHOTOS BY KYLE ERICKSEN, THOMAS IANNACCONE AND ROBERT MITRA ERICKSEN, THOMAS IANNACCONE AND ROBERT KYLE PHOTOS BY WWW.DIESEL-FRAGRANCES.COM 6 WWD, FRIDAY, SEPTEMBER 14, 2007

The Beauty Report WWD.COM A $2.2 Million Night for the DreamBall DREAMS CAME TRUE FOR LOOK GOOD, FEEL BETTER ON Monday evening. That’s because the organization — a collaborative effort between the American Cancer Society, the Cosmetic, Toiletry and Fragrance Association and the National Cosmetology Association — received a $2.2 million check, with funds raised at the 23rd annual DreamBall. The event, held at the Waldorf-Astoria Hotel in Manhattan, hon- ored Eric Thoreux, formerly president of Coty Beauty Americas, and Robert M. Amen, chairman and chief executive officer of International Flavors & Fragrances. This year’s DreamGirl — traditionally, a female cancer survivor Djimon — was Jayne Jamison, vice president and publisher of Seventeen Hounsou and magazine and a breast cancer survivor. “I didn’t believe that I was a Robert M. Amen Kimora Lee DreamGirl, even though my husband always told me I was,” Jamison and Dan Brestle Burt Tansky Simmons cracked. “Now I have third-party endorsement.” The evening even got a touch of stardust from Kimora Lee Simmons and her beau, Djimon Hounsou, who showed up to support Thoreux — while at Coty, Thoreux helped launch Simmons’ Baby Phat fragrance collection. A second freestanding scent, Fabulosity, will join her lineup this fall, and Simmons said she also has two ad- ditional fl ankers to her Goddess fragrance lineup coming out in the spring. “I’d also like to do a [fragrance] splash for my daughters,” Simmons added. Look Good, Feel Better helps women with cancer deal with the side effects of chemotherapy and radiation, by schooling them in beauty techniques and providing them with makeup. The organiza- Bill Dillard tion estimates that more than 550,000 women have participated in Bernd Beetz and Scott the program since its founding in 1989. and John Galantic Eric Thoreux Beattie

— Julie Naughton JOHN CALABRESE PHOTOS BY Chloé, Coty Chart Fragrance Growth Renewed Energy PARIS — In today’s launch-a-minute fragrance “This is not a Paulo project,” Toledano noted, ex- For Tina Bornstein world, Chloé has been a turtle, introducing a grand plaining that Chloé’s deal with Coty Prestige stems total of two fragrances since the arrival of its first back to when Phoebe Philo was still at the design helm. eauty entrepreneur Cristina Bornstein, who scent, Chloé Classique, back in 1973. Instead, the new fragrance refl ects the input of Chloé’s Bcofounded the now-defunct Tina & Tony indie But the fashion house’s new scent — landing on internal design, marketing and management teams. cosmetics brand, is busy reinventing herself on the counters next February with new licensing partner “The idea is to connect as much as possible the Internet with plans to launch an instructional health Coty Prestige — is designed to be a hare, powered perfume to the Chloé world,” Scannavini said. and lifestyle Web site, tentatively scheduled to go by Chloé’s explosive momentum during the past For Coty, which acquired the Chloé beauty li- live in November. few years. cense from Unilever two years It’s called Cristinasenergycenter.com, and is “We’re reestablishing the Ralph ago, the new project is part of a aimed at promoting health and generating energy. Chloé brand in the fragrance in- Toledano strategy to grow its “high-profi le Bornstein explained that the site is divided into dustry,” Coty Prestige president designer” fragrance business. seven sections, one of which will market essential Michele Scannavini said about Scannavini lists Coty’s Marc fragrance oils designed to stimulate one’s chakras, the scent, which will be unveiled Jacobs, Vera Wang and Vivienne the body’s psychic energy centers as described by at a party Oct. 6 during Paris Westwood brands to be in that yoga philosophy. “[The oils and crystals] are all in- Fashion Week, only hours after grouping, as well. fused with healing reiki energy,” Bornstein noted. Chloé’s latest fashion show. “They all have very strong In addition to the shop, which merchandises the es- Details about the product personalities, are extremely in- sential oils and crystals, another section features instruc- are embargoed until the launch Michele spirational,” he said. tional energy exercises. Another department will offer event, but Scannavini and Ralph Scannavini The new Chloé fragrance will lifestyle suggestions. A resource area is being designed Toledano, chairman and chief be sold alongside the brand’s ear- to help viewers looking for healers and programs. executive offi cer of Chloé, gave a joint interview lier scents — which also include Narcisse, launched The site will also convey discussions and fea- Thursday to discuss the business parameters. in 1992. Scannavini said the Chloé fragrance business ture interviews, Bornstein said, adding that eventu- The plan in the fi rst year is to introduce the today is “very small,” without elaborating. The intro- ally she would like to establish a freestanding en- scent in 8,000 doors worldwide — with Saks Fifth duction in February will be followed by more beauty ergy center, where “people can come for healing.” Avenue among the exclusive launch partners — product debuts. Scannavini said he does not rule Ultimately, Bornstein envisions creating a retreat in backed by a powerful marketing campaign. out the possibility of fragrance for men, skin care or upstate New York. For Chloé, the fragrance represents a new access makeup. Toledano also noted the possibility of beauty She has been working on the site since Wella’s point for a brand prized for its feminine dresses, products for its fast-growing See by Chloé brand. Cosmopolitan Cosmetics discontinued the Tony & hardware-festooned leather goods and trendy foot- Scannavini said Coty won’t be launching Chloé prod- Tina brand about two and a half years ago. wear. It’s also a chance to crystallize Chloé’s brand ucts at the beauty market’s traditional fast and furious In addition, Bornstein is scheduled to appear as essentials — femininity, sophistication, sensuality, rate. However, it won’t wait another 15 years either. part of a panel discussion, entitled “The Natural youth and edginess — at a time when the fashion “We hope to bring the Chloé fragrance brand Phenomenon,” at 2:30 p.m. on Wednesday as part brand is being steered by a new creative director, back to what it was many years ago,” said the HBA Expo at the Jacob K. Javits Convention Paulo Melim Andersson, who will show his second Scannavini. “For us, it’s a renaissance.” Center here. collection for Chloé next month. — Miles Socha and Jennifer Weil — Pete Born

With fi nancial backing from France’s Research Ministry, Telinge and his team turned to biotechnology and came upon Novaxyline, an algae extract deemed to have Novexpert’s Aim: Blend Science, Nature anti-infl ammatory qualities, fi ght free radicals and stimulate sirtuins. The net effect is increased cellular longevity and younger-looking skin, according to Telinge. PARIS — Marrying scientific know-how with natural ingredients was the idea Other ingredients in the Novexpert products are peptides, hyaluronic acid and vi- behind Novexpert, a skin care brand due to launch in France in November. tamins A and E. Telinge and his team didn’t let the hefty price tag of certain ingredi- Following a decade of developing more than 1,600 formulas for leading beauty ents stand in their way. A kilo of peptides can cost 70,000 euros, or $97,185 at current players in its laboratories near Versailles, France, Novexpert managing director exchange, whereas a kilo of Novaxyline goes for 30,000 euros, or $41,650, he said. Cyrille Telinge and his team of 20 chemists, dermatologists and biologists decided The seven-unit Novexpert lineup targets people of various skin types and ages. to create a brand of their own. For all skin types, for instance, there is the 15-ml. bottle of Absolute Anti-Wrinkle “We’ve seen a real segmentation in the fi ght against aging,” he said. “On the one Eye Contour Care, which is to retail for 39 euros, or $54.14; the 40-ml. fl acon of hand, there are these so-called 100 percent natural products that potentially cause al- Skin-Perfecting Serum, for 49 euros, or $68, and the 75-ml. fl acon of Absolute lergies, due to essential oils. And on the other hand, there are mainly chemical prod- Regeneration Mask for 36 euros, or $49.98. ucts, reputed to be more effi cient, but whose long-term effects are little known.” While Telinge declined to reveal sales forecasts, industry sources estimate the Arguing that fragrances are the number-one cause of skin allergies and preser- new brand will generate fi rst-year wholesale revenues of 3 million euros, or $4.2 vatives the second, Novexpert’s researchers excluded those and other substances million. The line will bow in 500 doors, including Galeries Lafayette department (numbering 1,600) — including silicone, parabens and mineral oils — from their store and Parashop pharmacy chain. new products’ formulations, which took fi ve years to create. — Ellen Groves WWW.DIESEL-FRAGRANCES.COM 8 WWD, FRIDAY, SEPTEMBER 14, 2007

The Beauty Report WWD.COM Ahava Signs Davis as Spokeswoman Brady, Greco Team Up,

mmy-nominated “Sex and the City” star Kristin EDavis has joined Ahava to become the Israel-based Kristin Davis Form Consulting Firm beauty company’s fi rst celebrity spokeswoman. “I was attracted to Ahava because of their use of the obert Brady and Alan S. Greco, two top fra- minerals found in the Dead Sea and their commitment Rgrance industry veterans, have teamed up to to using only high-quality ingredients in their products,” form a consulting firm. Called Beauty Management said Davis, who was a spokesperson for Maybelline New Group, it is based in Jersey City, N.J. York three years ago. “I noticed a difference in my skin Brady was president and chief executive offi cer the fi rst time I had an experience with them at a spa.” of Christian Dior Perfumes Inc. from 1997 to 1999, As the company celebrates its 20th anniversary and before that, he headed another LVMH subsidiary, this year, Ahava executives are looking to raise brand Parfums Givenchy, for eight years. Alan S. Greco was awareness both in the U.S. and internationally. Signing the president and ceo of Paul Sebastian Inc., which a spokesperson is part of the initiative. he cofounded in 1979 and sold in 1995, before moving “Kristin represents everything that our brand on to a series of various positions in different busi- stands for, since she has that natural, radiant and nesses, including Victory International USA LLC. beautiful look that’s pure,” said Michael Etedgi, chief The partners said they aim to function as man- executive offi cer of Ahava North America. “I’m sure agement consultants, including brokering deals she will be instrumental in helping make Ahava a and acting as sales agents and facilitators for household name.” creating private label fragrance brands. Brady, As part of the multiyear contract, Davis will appear who noted that he and Greco were involved in in the company’s ads and on the international Web site, the fragrance deal between Jessica Simpson and in addition to other marketing initiatives. The print her master licensee, Camuto Group, with Parlux ads featuring Davis will break in January in about 10 Fragrances Inc., said he and Greco are working in to 15 beauty, fashion and lifestyle books both in the four areas. However, he asserted that “the biggest U.S. and overseas. potential for us is as sales agents.” According to industry sources, Ahava will generate Referring to European brands seeking to enter about $150 million in worldwide retail sales by yearend. the U.S., he said: “we will be able to provide a Ahava currently offers 70 products in some 40 coun- turnkey U.S. subsidiary.” He added that, in ad- tries. In the U.S., Ahava products are sold in spas, dition to providing strategy, the fi rm has set up a independent pharmacies, boutiques and department national sales network, with particular attention stores, including Bath & Body Works, Ulta, Nordstrom, a “Dead Sea spa center” in New York where customers to sell-through. “A lot of companies want to come Lord & Taylor and Carson Pirie Scott. can go and receive treatments or fl oat in a salt pool. into the U.S. market, but they are scared they will Ahava also has plans to open more freestanding “We wanted to bring the Dead Sea experience to lose money,” Brady said. “They need to have an stores. In the past year, the company has opened three New Yorkers so they don’t have to fl y that far to benefi t understanding of the alternatives.” stores in England, Germany and Singapore. According from minerals of the Dead Sea,” said Etedgi. — Pete Born to Etedgi, by the end of next year, Ahava hopes to open — Michelle Edgar Anne Fontaine’s Move Into Beauty PARIS — Anne Fontaine — the doyenne of the white — whose colors are interchangeable depending on the shirt — has gotten into beauty. massage being done — hover above the tables. There’s She said her signature skin-care line and spa, an entire space devoted to a bath and a Jacuzzi for making its debut in the basement of her newly mint- two, and there are areas for facials and foot soaks. ed boutique on the tony Rue Saint-Honoré here, was In some places, spaces may be morphed by mov- a natural evolution. able walls to divvy up areas for further privacy. “Before I went into fashion, I really wanted to On the walls of certain rooms are shards of ceramic. become a biologist; it was a dream for me,” she ex- “They give a fl ash of memory,” said Putman, who ex- plained. Fontaine said she went into plained that she was inspired by a wall designing shirts instead because her she once saw in a village in Spain. husband’s family is in the business. During a walk-through, she calls But nowadays, Fontaine can turn the spa “a little bit mysterious.” her fantasy into reality, thanks to a Fontaine says her “passion for fab- percolating fashion business, which rics” has segued into her treatment has reportedly reached $100 million. formulations and massage practices. “I very much like the idea of protect- To come up with her products, which ing the planet,” she said. “It’s not only are used in her spa’s services, she important to give people natural things worked for two years with a labora- to buy, but it’s important that people tory in Southern France specializing think about taking care of themselves.” in organics. That’s where the spa project Fontaine was particularly con- comes in. The sleek, 5,920-square- cerned with making her products The spa was designed by Andrée Putman. foot space — dominated by natural A selection of Cosmetique Bio smell good — not always easy, given materials and hues — was designed Anne Fontaine items. the nature of organic formulas, which to promote relaxation. Silk Dream involves swathing by Andrée Putman. A feeling of calm often have a harsh odor. clients in the fabric while a wooden embroidery spindle emanates everywhere, from the rough-hewn stone Her 11-unit line is divided into two parts. There’s is worked over feet for refl exology. There’s also an After walls to the white couches and chairs to the large Naturel de Lin, an all-natural treatment collection, Shopping massage to work those shoulder and back glass doors sealing off the waiting lounge. and Performance de la Soie, which uses silk protein muscles fatigued after a day trolling the shops. Here, alongside her beauty brand, called to help regenerate cells as well as moisturize and While company executives would not discuss sales Cosmetique Bio Anne Fontaine, a small clothing protect the skin. projections, industry sources estimate the spa will collection also is sold, including shirts made out of Massage techniques at the Anne Fontaine spa mix generate between $7 million and $9 million for the organic cotton. Fontaine handpicks artists to show numerous practices from countries around the world, in- spa and boutique combined in fi rst-year retail sales. here, as well. At present, Marie Taillefer’s photo- cluding Thailand, Sweden, Japan and her native Brazil. Looking ahead, Anne Fontaine plans to open a graphs are on display. Taking a cue from the latter is the Voodoo Treatment, new 7,770-square-foot boutique-spa — covering three After passing through the large glass doors, there’s inspired by tribal dances and done to Brazilian music, levels and including four treatment rooms — on New a meandering hallway off of which are numerous in which a therapist fi rst uses quick hand movements to York’s Madison Avenue next year. types of treatment rooms. Soothing rectangular lights tone a client’s muscles and then switches to slow ones — Jennifer Weil

in other Asia-Pacifi c markets,” K.K. Chua, president of Mary Kay Asia-Pacifi c, said in a statement. “We now have more than 350,000 Mary Kay independent Mary Kay Opens Offi ce in India beauty consultants in the region. ” Hina Nagarajan, country manager of Mary Kay Cosmetics Pvt. Ltd., will be in NEW YORK — Mary Kay Cosmetics said Wednesday it will open a new subsidiary, charge of the new offi ce in India. She has previously worked with other consumer Mary Kay Cosmetics Pvt. Ltd., in India. product companies such as ICI Paint Ltd. and Nestlé India Ltd. The direct seller will open its new Indian operational headquarters in With the addition of the new India offi ce, the Dallas-based company will be in Gurgaon, near New Delhi. The fi rst phase of the brand’s launch there will be fo- more than 30 markets worldwide. There are more than 1.7 million independent cused on three markets: Chandigarh, Ludhiana and New Delhi. Mary Kay plans beauty consultants who work for Mary Kay, which had wholesale sales of $2.25 bil- to invest $20 million in India over the next fi ve years. lion last year. “We anticipate generating the same success in India that we are experiencing — M.E. WWD, FRIDAY, SEPTEMBER 14, 2007 9

The Beauty Report WWD.COM Sundari Broadens Holistic Approach

By Kavita Daswani “We were playing with the idea of using a traditional format and talking about the benefi ts of oiling hair. It’s almost unheard of in this part of the world, but it’s LOS ANGELES — Protecting the hair, skin and body from environmental factors proven to be very interesting to spas here. They are fi nding a lot of intrigue and will be a dominant theme in a line of new products that the ayurvedic-inspired interest in it. I was personally surprised by the kind of response we received, with brand Sundari is planning to launch next year. reorders coming in very rapidly.” The company, which moved its headquarters from New York to Los Angeles two Continuing to stick to its ayurvedic principles, Sundari is gearing up for the years ago because it viewed the West Coast as more amenable to its holistic phi- November launch of the Neem & Copper Repairing Cream Cleanser, a $40 at retail losophy, has added to its established repertoire of skin care products by focusing product that contains lavender oil, Roman chamomile, sugar cane, apple and green on the hair and body. It has just started shipping a Neem & Coconut Hair Oil, and tea extracts in addition to neem and copper. Around the same time, Sundari is launch- a slew of body creams and exfoliating lotions that is the retail version of its profes- ing Gotu Kola & Yucca Facial Serum, a $70 product that also contains algae and acetyl sional products. Neem is a common ingredient in many of the products; the plant, hexapeptide 3 to help fi rm and hydrate the skin. Gotu Kola has also been used as a which is native to India, is known for its antifungal and antibacterial properties. topical application in hair and skin care in India for centuries. New holiday gift sets Rahul Koul, Sundari’s chief executive offi cer, said that while new categories in packages are modeled on patterns of woven Oriental carpets, and contain a range are being embraced, including a new lip balm and holiday and travel-sized kits, of neem-based face and body products. the company is going for gradual growth and limited seasonal launches that target And for next spring, Koul will introduce Omega 3 & Mandarin Lip Treatment specifi c beauty problems, instead of rolling out multiple new products at a time. that will include avo- “What we have in the pipeline now is environmental care, which is the theme cado and sunfl ower oil, we are developing as a new line,” said Koul, adding that pollution and sun expo- soybean lipids, beeswax sure counted as among the greatest threats to skin health. and essential oils from “Our perspective is that there is a gap in the spa market where certain products Mandarin orange, orange and concept opportunities are very important right now, and this is one of them.” Spas peel and lemon peel that are now Sundari’s largest distribution outlet, with the brand being in some 200 high- will again be sold through end resorts and spas around the country, and another 100 internationally. He said that spa channels. some are developing environmental protection treatments, and the new line would “Spas are staring to complement that. Koul anticipates “four or fi ve” stockkeeping units in the collection. see ayurveda as a more “In the past couple of years, we have gone from 20 stockkeeping units to more mainstream concept,” he than 60, and we are able to address the needs that a large spa has in terms of retail said. “It’s simply more products. There has been rapid expansion to our product portfolio. But I don’t see accepted within that en- it becoming a much larger line because, in the context of a spa channel, growing a vironment.” line too big makes it very diffi cult for a spa professional to be able to meaningfully make recommendations. Our thought process is that we design treatments and then Sundari’s body develop products to go with those treatments.” care products. The hair oil, which retails for $30, might have seemed a surprise addition to the inventory because hair oil is hardly used in America. In India — Sundari is based on the ancient Indian science of ayurveda — hair oils make up the largest beauty category, and within that, coconut oils are exceptionally popular. “It’s a generations-old medium of hair care, but now we are giving it a new twist by using it as a carrier,” he said. The product is to be massaged into the hair and scalp once a week, and then shampooed out after 30 minutes. The coconut oil carries nutri- ents into the hair, and is considered the most powerful hair regenerator in nature. Physicians Formula’s Green Frontier Fruits & Passion Raising U.S. Profi le rench Canadian company Fruits & Passion has 1,200 stockkeeping units By Molly Prior F& Passion will launch an aggres- and 23 collections. sive expansion plan over the next few Last week, the company opened a NEW YORK — Physicians Formula, the company that ignited the mineral months, opening stores across the U.S. 1,500-square-foot location in the Boston makeup trend in the mass market two years ago, is bent on blazing another and updating the brand’s look with a area’s Natick Collection mall. The com- new trail: organic makeup. new logo. pany’s only other U.S. store is located The beauty fi rm divulged plans to launch the fi rst all-natural makeup Celebrating its 15th anniversary this in Scottsdale, Ariz. The fi rm will now line formulated with certifi ed organic ingredients at its fi rst investors day, year, the company is aiming to open be- focus on the U.S., U.K. and Japanese held here on Wednesday. tween 50 and 200 U.S. stores in the next markets. Following the opening of its Physicians Formula chief executive offi cer Ingrid Jackel introduced the three years, according to Guy Hurteau, fi rst store in the U.K. in Manchester, new product initiative under the code name Project Green, but was mum on vice president of Fruits & Passion. new stores will debut in Aventura, product specifi cs. She did say both packaging and formulas were designed Known for its natural products, Fruits Fla., and Las Vegas this fall. In early to be eco-friendly, and that it will be the fi rst U.S. cosmetics line certifi ed by November, the company will expand Ecocert, a regulatory organization based in France. into Japan with a store in Tokyo. The The company will launch the natural makeup line with a range of face stores range in size from 750 to 1,400 makeup late this year, and then steadily expand it to additional cosmetics square feet. categories. Jackel said the natural initiative ties into Physicians Formula’s According to industry sources, the fundamentals of being a premium-priced, problem-solution (as opposed to Fruits & Passion franchise generates fashion-driven), ultragentle brand. about $125 million in retail sales. In 14 She added that by 2010 the natural cosmetics effort could grow to a markets worldwide, the company cur- 100-item line, representing 30 percent of the company’s product portfolio. rently has 169 stores, all of which have The line, said Jackel, also may be the key to opening doors in alternative been recently renovated. distribution channels. Jackel said the organic-ingredient-infused items The company also repackaged the will be priced slightly higher than the company’s existing products. entire Fruits & Passion assortment, Physicians Formula, which currently sells its wares in 2,700 stores, changing its signature logo to make it expects to expand its reach to a total of more than 2,900 doors next year. more modern. During the year, the company has expanded its door count in Wal-Mart, “We went through a Kmart and Rite Aid, said Physicians Formula president Jeff Rogers. “I Fruits & Passion’s complete branding re- think we can double our stores and double our space,” he continued, re- new Boston store. vamp,” said Hurteau. ferring to the company’s long-term distribution prospects. “Since we’ve been an es- The company, tablished brand for the which generated net last 15 years, we decided Current sales of $94.4 million it’s time to update the items from last year, plans to logo and image with new Physicians introduce a total of visuals.” Formula. 50 to 100 new prod- The company is also ucts next year across launching two new col- three major initia- lections — a men’s collec- tives, namely Project tion and Trees of Life, a Green, Mineral Wear body care collection with line extensions and fragrances taken from se- new eye makeup lected trees from around products. the world. Products re- The firm expects tail from $7.50 for the to reach an estimated plant-derived soap to $45 $109 million in net for the eau de toilette. sales this year. — Michelle Edgar 10 WWD, FRIDAY, SEPTEMBER 14, 2007

The Beauty Report WWD.COM Prestige Cosmetics Enters Mineral Fray

NEW YORK — Tom Winarick, vice president of Prestige Cosmetics, is quick to admit up with a rash of new minerals and natural items. the retail business doesn’t need every line emerging from the current flood of min- Mineral makeups are multiplying at mass now that women have been trained via eral makeups. infomercials and home-shopping networks about the benefi ts Yet, Prestige is joining the ranks of L’Oréal, Neutrogena, Jane, of the formulas. Brands are trying to fi nd their own niche in Milani, Wet ‘n’ Wild, IsaDora, E.L.F. Cosmetics, Revlon, Almay, the burgeoning business, be it price, packaging or position- NYC New York Color and countless others annexing mineral for- ing. But most retailers worry how they’ll fi nd space and how mulas to the assortment. to decide which brands to stock. Prestige also is taking ad- One distinguishing point for Prestige, noted Winarick, is the vantage of its healthy distribution abroad, such as in Boots company is adding mineral options to existing items rather than the Chemists, and plans to take its minerals to European creating a freestanding line. Also, the mineral introductions are markets that are just discovering the benefi ts of the concept. playing off strengths Prestige has in the market. For Prestige, Winarick said it is a simple proposition since “We didn’t wake up one day and say, ‘Let’s add he sees minerals as part of the bigger brand. Beyond minerals,’” said Winarick. Instead, the move was that, Winarick and many others believe one or two calculated to serve what he sees is a true mar- dedicated brands offer enough choice. The goal ket void in Prestige’s price range for quality Prestige is to avoid other mass market pitfalls, where re- minerals. Cosmetics’ tailers have jumped so heavily onto one trend Prestige, which is associated primarily mineral eye that the business can’t support the footage. The with the eye category, is zeroing in on min- shadows. teen category is an example when in the early eral eye and bronzer items. The line, called Nineties, mass marketers yielded too much Skin Loving Minerals, boasts baked quads of space to youth brands. complimentary and blendable colors that can be Estimates are that minerals can snare about applied wet or dry. There are also shimmering trios 25 percent of the existing color cosmetics business, of eye shadow dust. Prices are $9.95 and $11.95, respectively. or about $750 million, in the mass market within fi ve A third eye product consists of single shades in clear single years. The challenge, explained Winarick, will be entic- pots priced at $3.95 each. Playing off strength in pencils, Eye ing women accustomed to one form of foundation to switch Prestige is offering eye pencils priced at $4.95 each. shadow to minerals. In addition, Prestige created loose powder, powder dust from Prestige Skin Loving Minerals will launch at retail early foundations and translucent fi nish powder and a bronzer Prestige next year. There will be introductory pre-packs. The compa- powder to take advantage of strides made in bronzers by Cosmetics. ny plans to host in-store beauty events with makeup teams the brand. There are also baked-mineral blushes. to demonstrate mineral makeup. Rather than position Skin Loving Minerals as a totally But that isn’t the only new product news at Prestige. The separate line, Winarick said the items are in addition to existing company is introducing a Hi-Defi nition fl uid eyeliner, a Volume Mousse Prestige items. However, the company is asking retailers for an ad- mascara, a Liquid Glitter eyeliner and in-and-out promotions such as a lip ditional foot of space at a time when shelf space battles are heating gloss to attach to cell phones. Pampering on a Local Scale: Ex-Coty Exec Opens L.A. Spa By Rachel Brown pores, complexion, wrinkles and sun damage. blue and golden brown. “When you go to most places, they will usually Curves suggest transition and renewal to Ayala. The nastasia C. Ayala’s résumé reads like a list of the have about three brands. We didn’t fi nd one brand dark Alder-wood front desk, which is topped with il- Aworld’s top beauty companies: she’s held posi- that had stellar products for every condition. I want luminated wood and glass retail shelves, winds its way tions at Revlon, Max Factor, Procter & Gamble Co., to be very inclusive,” said Ayala. “If you don’t take through the reception area. Wavy modular art appears the Estée Lauder Cos. and Coty, where she helped care of your clients and produce great results, you on the walls of a hallway and nearby treatment room. revamp Rimmel London as senior vice president of can pack up your bags.” “The whole idea was to create an environment that global brands. On the aesthetics end of the business, a $150 people enjoyed being in, no matter what treatment Ayala’s latest effort is less global and more local. acne treatment called The Cure uses a vitamin-rich they were getting, to be away from it all,” said Ayala. She’s left the corporate grind and returned to her masque and blue-light therapy to combat pimples. It’s a far cry from skin care spa Vera’s Retreat In native Los Angeles to open Pure Aesthetics/Pure A premium offering on the skin care menu is Pure The Glen, a prior tenant that Ayala recalled bathed Wellness, a 3,400-square-foot spa and wellness facil- Rejuvenation, which costs $375, lasts 90 minutes and the Pure Aesthetics/Pure Wellness’ space in pink. In ity with 10 treatment rooms tucked away in an offi ce features a pulsating facial massage that’s been in building on the busy thoroughfare that connects the Japanese skin care company Kobido’s repertoire for Westside to Sherman Oaks. centuries. An entry-level package is the $300 Fresh The offi ce politics may have changed, but the stra- Start, a series of three 60-minute facials that cleans tegic vision that propelled Ayala to the high ranks of up the skin of fi rst-timers or those preparing for a the beauty industry has not. She studied the cramped red-carpet event. spa market for two years before launching Pure On the wellness end of the business, Dr. Alexander Aesthetics/Pure Wellness, which offi cially opens next Rivkin, pioneer of the nonsurgical nose job, is Pure week, and asserts she’s carved out a unique niche: Aesthetics/Pure Wellness’ medical director and su- a one-stop beauty and health shop where outer and pervises on-site medical procedures. Nutritionists inner body concerns are addressed. Sanchez and Philip Goglia maintain offi ce hours to “There is a tremendous well of interest in con- guide clients’ diets and physical fi tness routines. A necting [beauty and health.] If you feel better, you set of three visits that covers diagnostic tests, a com- are absolutely going to look better,” said Ayala. “I fi t plete medical work-up, and nutritional and fi tness in [with] people who want to take their health and recommendations costs around $1,000. skin care to the next level. I worked hard to make the Getting spa goers to care for their insides at the Anastasia C. Ayala in her spa concept something I believe in and something that I same place they rectify their outsides will take some Pure Aesthetics/Pure Wellness.

didn’t see anywhere. That makes it stand out.” work, acknowledged Ayala. For a month, she’s pro- TYLER BOYE PHOTO BY Certainly, Ayala is not the fi rst person to associate vided friends and family with private services at Pure good skin with internal vigor. N.V. Perricone M.D., Dr. Aesthetics/Pure Wellness to get a feel for the desired the Eighties and Nineties, the spa’s namesake, Vera Brandt, Murad, Kinerase and Borba have all encour- aesthetics-wellness balance. She noted that, even if Brown, gained a following among Los Angeles glitterati aged skin care shoppers to strengthen their beauty they didn’t actually sign up for the wellness selections, and even Ayala frequented the spa with her sister dur- regimens with supplements. Ayala also developed about 50 percent of clients so far express an interest. ing her teen years. “It was the place to be,” she said. a 10-item line of vitamins with nutritionist Ralph “We have a lot of people who get regular facials, In the current Los Angeles spa scene, celebrity Sanchez and manufacturer Designs for Health that but my only question is, ‘Can we get them to think pores carry the most cachet, and Ayala knows that sells from $19 to $65. A seven-item therapeutic skin about the other side to really optimize their skin matching the site’s former glory will require attract- care line will be introduced next spring. care?’” Ayala said. She’s testing a few different tech- ing clients with coveted IMDB profi les. “The enter- But Ayala differentiates Pure Aesthetics/Pure niques — placing dieticians at the reception desk to tainment industry is ‘the’ industry in Los Angeles, Wellness by tailoring services to people’s individual handle health inquiries is one — to assuage custom- just like the fashion, beauty and fi nancial industries needs, rather than directing them to a single compa- ers to try out the wellness program. are in New York,” she said. “You have to make sure ny’s solution. She retails nearly 20 different brands, Ayala was pleased with early indicators showing you have great outreach to them.” including IS Clinical, Carita Paris, Decleor Paris, B. she’s attracting males — half of the friends and fam- Ayala projected that Pure Aesthetics/Pure Kamins, Intraceuticals, Glo Therapeutics, Cellex-C, ily members that dropped by have been men — and a Wellness would be operationally profi table in three Benev, Kobido, Sircuit Skin, Neocutis, Skin Medica wide range of ages from teens to Baby Boomers and months, but doesn’t expect to see a substantial return and Hymed, and picked eight for the professional beyond. Pure Aesthetics/Pure Wellness’ design is an- on her investment for two to three years. Industry back bar. To choose the right remedy, a Clarity Pro drogynous to appeal to both sexes. The color palette sources estimate the facility will generate fi rst-year analysis takes about 15 minutes to assess customers’ is awash in cool hues such as eggshell, alabaster, pale revenues of $2 million. WWD, FRIDAY, SEPTEMBER 14, 2007 11 WWD.COM Liz Claiborne Decides Future of Moderate Brands By Whitney Beckett iz Claiborne Inc. has completed Phase One of its strategic review. Now onto Phase Two. FACT BOX L After placing 16 of its brands under review on July 11, the $4.99 billion vendor ● Tapemeasure had been around for 30 years, but took on a new identity in 2005, when has settled the fates of its seven moderate brands: selling Emma James, Tapemeasure, Claiborne relaunched the label as a moderate-priced, trend-driven line. JH Collectibles and Intuitions to Li & Fung USA, a subsidiary of Li & Fung Ltd.; fold- ● Claiborne created Emma James in 1996 as an entrée into the upper-moderate zone, but ing Stamp 10 and Tint into its Axcess and Liz & Co. lines, and shuttering First Issue. the brand got off to a rocky start, reducing from 225 doors to 100 in the fi rst year. In 1998, “This shows that within a strategic review, a number of things can happen,” said Roberta S. Karp, senior vice president of business development, legal and corporate Claiborne reduced prices about 10 percent and oriented it more to items and knitwear, and affairs, at Claiborne. “Some of these were exclusive brands with department stores, by 2000, door count was up to 700. and we wanted to give certainty to our retail partners as to what they would be doing ● J.H. Collectibles was an important player in the better market in the Eighties with annual in spring. Now we are focusing on the better and bridge brands.” sales of around $100 million, but Claiborne bought the trademarks in 1997 at a bankruptcy The next step for Claiborne is to sell the nine higher market brands — Prana, Enyce, auction. After a six-year hiatus, it relaunched in 2002 as a moderate label, targeting 35- to Laundry, Sigrid Olsen, Dana Buchman, Ellen Tracy, C&C California, Mac & Jac and Kensie 65-year-olds who wore it during its heyday. — which it had been holding off on until the fates of the moderate labels were settled. Karp ● Claiborne launched Intuitions as an exclusive for Dillard’s Inc. in 2004. said the company divided the brands into Phase One and Phase Two early last month. ● “Dozens of qualifi ed strategic and fi nancial buyers have shown signifi cant inter- Stamp 10 launched last year as a denim-based exclusive for Kohl’s Corp., which also has Villager est” in the remaining nine brands, Karp claimed, and the books are now going out and Axcess, which fall under the Liz Claiborne brand family umbrella, which the company kept. and sales conversations are beginning. She doubts Phase Two brands will share the ● Tint launched as an exclusive denim brand in 2005 with J.C. Penney Co. Inc., which also divided fates — being sold, folded or shuttered — as Phase One companies. has the successful Liz & Co. for women and Concepts by Claiborne for men. “We think most of these businesses will be sold, given the interest, but we will ● First Issue began as a chain of stores for Liz Claiborne, but the company closed the 77 weigh that interest against our own interest as we continue to run them,” Karp said. units in 1995. The next year, it revived the label as a moderate-priced exclusive line for Sears. “It will depend on if we get the number we think is appropriate.” Claiborne will fold the denim-based Stamp 10 and Tint product into the Axcess and Liz & Co. exclusive lines for Kohl’s Corp. and J.C. Penney Co. Inc., respectively, so that that’s the sweet spot of Li & Fung, that our model is all about being fl exible. Brands Stamp 10 and Tint will cease to exist as distinct labels. a traditional wholesaler can’t sustain with competitive costs may become our core. The vendor decided to discontinue its First Issue business — a brand with a tie to We are building a very different type of brand portfolio, as Liz Claiborne and our col- the Liz Claiborne label — at Sears by the end of this year. “We had good conversations laboration speaks to other collaborations that can take place in this marketplace. The with our retail partners, and this seemed like an appropriate solution,” Karp said, days of all of us looking at each other as pure competition are changing.” when asked if retailers had bid on the lines. Darling said he has been in conversations with Claiborne for the last 30 days, and The transaction with Li & Fung, for which the fi nancial details were not disclosed, his next move is to hold talks with retailers to build a brand platform and strategy. Li is expected to close in October. & Fung also is interviewing the employees of the four brands, with particular interest Following its purchase of Regatta Pacifi c Alliance for more than $145 million last in the “front of the house and the back of the front of the house,” as the supply back- month, Li & Fung USA is continuing to build its proprietary brand portfolio with side houses the fi rm’s strength. these moderate labels. He added that, although Li & Fung has not expressed interest in the Phase Two “Even though these brands may not have the status they had with Claiborne origi- brands, the fi rm is still looking for ways to build its proprietary portfolio, so those nally, we still think they have a presence with retailers,” said Rick Darling, president conversations could still take place, though he thinks he would face far more compe- of Li & Fung USA. “It’s a segment that a lot of wholesalers are running away from, but tition than on the fi rst round. Bulgari Profi ts Leap 32% in Half Richemont’s Rupert

By Amanda Kaiser Francesco Trapani MILAN — Despite higher investments and promotional expenses, Bulgari SpA Sees Opportunities posted double-digit profit growth in the first half and forecast continued sales By Samantha Conti momentum for the rest of the year. Net profi ts for the fi rst six months ohann Rupert, executive chairman of Compagnie Financière Richemont, said ended June 30 rose 32 percent to 58.4 JThursday the company would weather the current storm in financial markets. million euros, or $71.8 million at aver- “Access to easy money has dried up for some market participants, and I age exchange rates for the period. Sales, am not sure that we are necessarily over the worst,” he told shareholders at as reported in July, advanced 8.9 per- Richemont’s annual meeting in Geneva. Richemont’s portfolio of brands in- cent to 487.8 million euros, or $600 mil- cludes Cartier, Van Cleef & Arpels, IWC, Piaget and Chloé. lion. The company said revenues would Regarding the outlook for luxury goods overall, Rupert said: “Richemont have grown 15 percent at comparable is fortunate that the luxury goods business, whilst not immune to external exchange rates. disruption, has historically shown itself to be relatively resilient. “The fi rst half was a period in which Japan continued to suffer, which is a bad thing since it is such an important mar- ket for us, but we performed extremely I have every confi dence that, whatever may lie well in the rest of the world and managed “ to compensate,” Bulgari chief executive ahead in the short term, Richemont will continue Francesco Trapani said in an interview. Trapani expressed some concerns to prosper and grow over the long term. about the continued weakness of the ” yen, but remained optimistic about the appetite for timepieces, jewelry and other — Johann Rupert, Compagnie Financière Richemont luxury items in the second half. He said a strong Christmas season will allow Bulgari to post full-year net profi t and sales growth (at constant currency rates) of “There are many opportunities for our businesses to grow, both in terms between 10 and 12 percent. of the expanding number of potential clients in established markets as well First-half earnings before interest and taxes gained 17 percent to 61.7 million as new markets, which are opening up to luxury products. I have every confi - euros, or $75.9 million. Profi t margins increased despite the fact that the jeweler dence that, whatever may lie ahead in the short term, Richemont will continue made larger investments in retail and other operations. Bulgari’s profi ts also grew to prosper and grow over the long term.” as the company lifted its retail prices, a measure that was intended to partially He added that the company’s cash resources are conservatively invested, compensate for the strength of the euro against the dollar and yen. Bulgari’s prices and that so far, it has not suffered any fi nancial losses as a result of market have grown by an average of four percent over the last year, Trapani said. conditions. He also said Richemont is seeking to “minimize its exposure” to “A good businessman always wants to sell his goods at the highest price,” he said. any major downturns in markets and consumer confi dence. First-half operating costs rose 7.7 percent to 194.4 million euros, or $239.1 mil- In fact, Rupert said his biggest problem right now is meeting demand, espe- lion, as Bulgari built and renovated its store network. As of June 30, Bulgari had 232 cially in the watchmaking sector. “We are addressing the whole supply ques- stores, 136 of which it owns. Later this year, it will fete a new towering fl agship in tion, with plans for further expansion of our watchmaking capacity. That will Ginza in a bid to jump-start business in the lackluster Japanese market. take some time to deliver, however.” Advertising and promotional expenses grew 3.9 percent to 55.3 million euros, or Rupert also gave a trading update for the new fi scal year’s fi rst fi ve months $68 million. to Aug. 31. Sales grew by 11 percent, with the strongest growth coming from Bulgari specifi ed that second-quarter net profi ts grew 31.5 percent to 34.4 mil- specialist watchmakers, where overall sales increased by 20 percent. lion euros, or $46.4 million, while revenues increased 7.7 percent to 262.6 million He also broke out some brand-specifi c sales rises: Chloé sales rose by 12 per- euros, or $354.5 million. cent; Montblanc, by 11 percent, and Cartier and Van Cleef, by 8 percent. The company’s net debt rose to 154.8 million euros, or $190.4 million, from 115.5 By geographic region, sales in Asia rose by 22 percent; in Europe, by 14 per- million euros, or $142.1 million, a year earlier. Bulgari said the increase stemmed cent, and in the Americas, by 6 percent. Due to the weakness of the yen, sales from a variety of factors, including the payment of an 86.9 million euro, or $107 in Japan fell by 4 percent in euro terms. million, dividend in May and a strategy to exploit a weak dollar and stock up on The company, which approved a dividend of 1.25 euros, or $1.74, per share precious stones and other raw materials. before deduction of withholding tax, will release its interim results for the six- “We decided to take advantage of the current prices and stock up now,” Trapani said. month period to Sept. 30 on Nov. 16. 12 WWD, FRIDAY, SEPTEMBER 14, 2007 WWD.COM Yamamoto to Launch Secondary Line

Continued from page one Yamamoto’s fi rst Coming Soon collection, with some Yamamoto’s new line is the latest sign of a vibrant 350 references and an emphasis on jeans and knitwear, Yohji Yamamoto market for designer second collections — often posi- will be unveiled to the trade in January during men’s tioned in the hot contemporary zone and aimed at as- fashion week in Milan. pirational customers. During the past year, the likes “It should be quite an affordable line. It’s young and of John Galliano, Alexander McQueen, Vera Wang and contemporary,” Braglia said. “I think a line like this Daryl Kerrigan all have entered the fray with lower- could have a really great potential.” priced collections. Meanwhile, Giorgio Armani, Chloé In an interview, Keizo Tamoto, Yamamoto’s executive and Dolce & Gabbana all have fi ne-tuned or repositioned vice president and ceo, said Coming Soon is targeted at their second brands in recent young consumers looking to years, seeking to kick-start trade up from streetwear to growth and access a broader “something with a little bit of base of consumers. And brands elegance, a more simple way such as Quiksilver, Imitation of dressing.” of Christ and Hollywould are Tamoto allowed that jumping into the contempo- Yamamoto’s signature collec- rary market, which has been a tion, mostly tailored, is often popular category at retail from so singular that, “if you buy a Dallas to Dubai. Yohji jacket, you need Yohji Designer fi rms — recently pants and maybe you need focused on ultraexpensive, also a Yohji shirt and shoes. exclusive products in a boom- It’s a very dangerous line.” ing luxury climate — are now By contrast, Coming Soon is keen to reach younger custom- described as a mix-and-match ers, too, and are less reticent collection of easy-to-wear about assigning licenses for styles, from blouson jackets to the sportswear category. For T-shirts and accessories. example, Galliano partnered The partners said the new with IT Holding’s Ittierre line could be sold in as many unit, a pioneer in launching as 800 doors in Europe, mostly designer jeans and younger independent specialty stores, lines in the early Nineties, which compares with about while McQueen signed up with The label doesn’t mention Yohji Yamamoto. 250 for Y’s, Yamamoto’s main SINV, which also produces and distributes See by Chloé, sportswear collection. In America, Braglia is gunning Moschino Jeans and Red Valentino. for about 100 select department stores and specialty re- “See by Chloé will be a major priority for us in the com- tailers over three years. Yohji Yamamoto Inc. will han- ing years,” Ralph Toledano, chairman and chief executive dle Japanese distribution. offi cer of Chloé, said Thursday. “In the last two years, the Prices have yet to be fi nalized, but Tamoto said most INAKOSHI KOICHI PHOTO BY See by Chloé growth has been really impressive.” jeans would retail from 150 euros, or $207, to 230 euros, level unit on Rue Cambon in Paris in March. Toledano said he would soon extend the See by Chloé or $317, with knitwear averaging from 120 euros, or Tamoto noted that sales of Yohji Yamamoto and Y’s in brand into new categories, unveiling an in-house leather $165.60, to 200 euros, or $276. T-shirts will start at about Japan have remained unchanged for the last few years, goods line in January and a footwear collection in July. 70 euros, or $96.60. at around 9 billion yen, or $77 million. International “Sunglasses will probably be the next project,” he added. Over the past fi ve years, Yamamoto has been broad- sales total about 4 billion yen, or $34 million, including Massimo Braglia, ceo of privately owned SINV, said ening the reach of his brand with new apparel lines and retail and wholesale. the company shifted its focus in recent years to fashion- product categories, including his Y-3 sportswear collec- While Yamamoto, 63, might not be considered a top- driven collections, a move which drove 2006 revenues tion with Adidas, his luggage and accessories line with of-mind designer for young people, SINV executives up 44.5 percent to 164 million euros, or $226.3 million. Mandarina Duck and his fi ne jewelry with Mikimoto. said they were attracted by his international design Sales are projected to climb to 175 million euros, or Yamamoto also has been expanding his retail net- credibility and the appeal of Japan’s anything-goes, $241.5 million, this year. work, with his largest store in the world slated to open youth-driven fashion culture. But the fact that Yamamoto and SINV decided not to later this month in Antwerp, Belgium, showcasing his And the Y-3 project underscored Yamamoto’s keen use the designer’s name on the Coming Soon label sug- signature line, the Y’s range, fi ne jewelry and Limi instincts, foreshadowing tightening links between fash- gests that it is creative content, and not only the status Feu, the collection of his daughter, who is showing her ion and sport, Braglia said. “He understood fi rst the po- factor of a label, that is driving the second-line business spring collection during Paris Fashion Week. Next up is tential of shoes and now how sport and fashion could be today. “We believe that the design should be more than a unit on Gansevoort Street in New York’s Meatpacking mixed together,” he said. enough,” Braglia said. District, slated to open in January, followed by a three- — With contributions from Akira Miura, Tokyo The Iraq War at Home Paul Haggis aul Haggis is no stranger to dark themes. He examined the complexity of race Prelations in his screenplay for “Crash,” for which he won two Academy Awards, and now, with “In the Valley of Elah,” the writer-director illuminates the emotional and psychological damage left by the war in Iraq. The movie, which opens today, chronicles a father’s search for truth after his son mysteriously dies shortly after returning home from a tour in Iraq. The stark who- dunit is based on an article by Mark Boal in Playboy’s May 2004 issue. “[The story] made me ask questions that made me really uncomfortable — what was happening to our families, what would happen to men and women who were coming back,” said Haggis. “The more research I did, the more disturbing I found it.” “In the Valley of Elah,” the title of which is based on the Israelite location of the battle between David and Goliath, stars Tommy Lee Jones as Hank Deerfi eld, a stoic, retired Army vet who is determined to learn the facts behind his son’s death with the help of a local detective, played by Charlize Theron. The movie reveals the emotional deterioration of both Deerfi eld, as he searches for the truth, and the soldiers connected to his son, who have been emotionally scarred by their experiences in the Middle East. Until recently, Hollywood seemed hesitant to release Iraq-themed fi lms, especially those that depict the casualties of war. “It was very

hard to fi nd a studio that wanted to do it,” admitted Haggis, noting GARRIGUE/WIREIMAGE GILBERT PHOTO BY Clint Eastwood helped champion the fi lm to Warner Brothers (Haggis ‘Yeah, that’s what was happening. It may not have happened to me, but previously worked with Eastwood when he wrote the script for “Million it happened to the guy next to me.’” Dollar Baby.”) “In the Valley of Elah” is one of several movies from major Hollywood Fortunately, signing on talent was much easier. “I called Charlize, and I studios hitting the big screen this fall about Iraq. Others include “Grace is sent her the script on a Wednesday morning. She read it that night. She called me Gone,” a story of a family who loses their mother while on duty, and “Redacted,” Thursday morning and said, ‘I’m in.’” recalls Haggis, 53. “I said, ‘Charlize, you know about a young Iraqi girl who is raped by American soldiers. Haggis hopes the sto- there’s no money.’ She said, “I know, I’m in.’” Jones and Susan Sarandon, who plays ries of the war’s aftereffects will be told more often. his wife, jumped just as quickly to join the cast. “They knew this was a passion “We’re not seeing it on network news, the photographs of the dead, the baby with project and it’s very easy to get people involved in those kinds of projects,” the her head blown off, the mother who was cut in two trying to save her son, the grand- director said. father who died trying to save his grandchild,” he said passionately. “But we’re mak- Haggis also used a handful of real Iraq veterans in the fi lm for roles both in front ing our veterans see that every day. If they’re seeing it, we should have to see it and of and behind the camera, some of whom were redeployed to the Mideast after then we can decide is this a just war, it’s worth the cost or it’s not, or should we bring shooting scenes. “It brought an air of authenticity to it,” said Haggis. “I didn’t care them home.” if the fi lm was terribly successful, but I wanted the veteran who’s been there to say, — Stephanie D. Smith 4(%#%7"%!549!7!2$3$%,)6%23 -),,)/. #/.35-%23 4/9/5/.!0,!44%2

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Man Power Jackets were de rigueur on the spring runways, making for slouchy- chic looks with an air of confi dence — not to mention a just-plucked- from-the-boyfriend’s- closet vibe. WWD, FRIDAY, SEPTEMBER 14, 2007 15 WWD.COM

3.1 Phillip Lim Alexander Wang Yigal Azrouël

Derek Lam PHOTOS BY JOHN AQUINO, GIOVANNI GIANNONI AND ROBERT MITRA GIANNONI AND ROBERT GIOVANNI JOHN AQUINO, PHOTOS BY 16 WWD, FRIDAY, SEPTEMBER 14, 2007 WWD.COM More From the Shows Fashion Scoops Mulberry: Mulberry’s creative director Stuart Vevers wants you to know that Mulberry is not just about the bags. “We’re a 360- NO SHOW: Emanuel Ungaro, which parted ways with designer Peter Dundas in degree brand and we want to get the message out there,” he July, will forego the catwalk during Paris Fashion Week and has canceled its said. To that end, the witty English label showed its collection scheduled Oct. 4 outing. “As we await the appointment of a creative director, we of women’s and men’s clothing and accessories at a series decided not to have a runway show,” Mounir Moufarrige, Ungaro’s chief executive of intimate showings Wednesday at the Soho House library. offi cer, said Thursday. He noted the spring collection will be designed by an in- Vevers channeled a “relaxed and relevant” feel with a touch of house team and sold at its Avenue Montaigne salons Oct. 5 to 11. Moufarrige California valley girl meets ultracool Euro girl with an Eighties said he would name a new designer “in due course. We’ll be out on the runway biker slant. Translation? Plenty of louche, distressed leather in March with a new designer.” He declined further comment on the search. jackets, skirts and dresses and slouchy denim shorts and According to sources, former Chloé designer Phoebe Philo and hot London jumpsuits — all adorned with pockets and zippers aplenty. But newcomer Christopher Kane are among those who have been approached. this va-va-voom chick also likes to dress up, so there were loose silk day dresses and easy cocktail pieces, such as an emerald LADY LUCK: What do Yoko Ono, Sylvie Fleury and Sophie Calle have in common? green frock with fl oral appliqués, and a not-too-sweet black-and- Word has it the three prominent artists are among those who have been asked white ribbon-adorned dress. And of course, there were plenty by Chanel to create works for its “Mobile Art” project involving a Zaha Hadid- of oversize patent bags, as well as smaller clutches — the white designed pavilion that will travel around the world, starting in January in Hong ostrich version with matching day planner was a standout. Kong. Chanel has commissioned 15 contemporary artists and given them carte blanche to create works inspired by its iconic quilted handbag. PHOTO BY ROBERT MITRA ROBERT PHOTO BY BRITISH INVASION: The rest of Hollywood may call it Emmy Week, but Los Angeles’ British Consulate-General Bob Peirce and his American wife, Sharon Harroun Peirce, have other ideas. The highlight of the inaugural “Brit Week” will be a fashion luncheon today at their Hancock Park residence featuring a Zandra Rhodes fashion show and a bevy of Brit beauties such as Victoria Beckham. Harroun Peirce, former fashion publicist from Washington, says she hopes to make it into an annual event. “People think it’s exciting to be invited to an event at the consulate, so I try to make each one really special. And each invitation clearly states a dress code,” she added. Still, the practice hasn’t prevented the fashions from running the gamut from sequins to blue jeans. “At least in Los Angeles, individualism is part of the attitude here, so people can pull it off. It’s a bit different from Washington,” she said.

STELLA FOR STARS: Malibu, Calif., moms Liane Weintraub and Shannon Swanson have a fan in Stella McCartney, who caught sight of a magazine story about their organic baby food line, TastyBaby, and contacted the two to ask them to host a shopping benefi t for the Children’s Action Network this Saturday at the Stella store on Melrose Avenue. The event will feature activities for tots while their famous moms — Kate Beckinsale, Jessica Capshaw, Courteney Cox Arquette, Cindy Crawford, Angie Harmon, Rosetta Getty, Jennifer Meyer, Gabrielle Reece and Jamie Tisch among them — preview the spring collection.

CHARGE IT: For retailers and editors, fashion week is a job. But for the celebs on the scene, it’s just another chance to shop. Victoria Beckham, for one, eyed the surrealist dresses at Marc Jacobs Monday night, perhaps coming up with a wish list to give her husband, David. “I buy him clothes, he buys me clothes, we help each other out,” she said. Earlier that day, Beckham browsed Bergdorf Goodman, stopping at BG for lunch and then hours later for coffee with her pals and security detail. Beckham, who also was at Oscar de la Renta, fl ew back to Los Angeles Wednesday after meeting with retailers and manufacturers about her own fashion line, DVB. PROMOTION STYLE scene

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I was fi nally ready to leave at 2 a.m., had to stand On sound check: in line and try and be pushy with the KCD ladies to Rizer: “I can’t quite place exactly what kind of music avoid said line. Or maybe that’s just what it feels it was, but you’d know it if you heard it. Let me try…. MEMO PAD like to me, since I have been to 22 parties in the Pretend you can hear me singing it…da da di dot dot dot last 6 days. Believe it — my feet ache, my liver dot de da de da da datta dada dada da da di dot dot daaa. DIARY OF A DOT-COM FASHIONISTA: Between a hates me and my meals for the last 72 hours have You know what I mean? Is it called ragtime? Nah…isn’t two-day taxi strike to kick off fashion week consisted of canapes and late-night pizza. All in that more like ragtime cowboy, thinkin’ ’bout you now, and the now-mythic two-hour delay for the the name of fashion!” boy…ragtime cowboy Jooooe…? I don’t know what I’m start of the Marc Jacobs show, the bloggers saying. Oh, yeah, Anna Sui.” — Amy Wicks, had plenty to discuss during this New York On fashion week do’s and don’ts Stephanie D. Smith and Irin Carmon season. Since more of the online community Tinsley Mortimer for Glamour: “Do keep your hair had access to the shows than ever before, and makeup from the night before if you have an DOUBLE VISION?: Imitation may be a form of fl attery, more off-the-cuff commentary was provided early show the next morning. but sources said a recent H&M campaign got the on the clothes, the people and the bubbly Tinsley “Don’t go to a street fair and get zeppolis folks over at Chloé hot under the collar. Eagle-eyed after parties. From the models who guest Mortimer and crepes in the middle of fashion week!! fashion bloggers also have been crying foul after spying blogged for magazines such as Glamour “Don’t tell your husband you have had a similarities between the Chloé and H&M ads, which and Elle to dot-com veterans such as the stressful day if you have just come home from both feature a trio of models — with Freja Beha Erichsen Fug Girls, and a few establishment fashion some shows. and Anja Rubik in both — with similar hairstyles, poses critics writing for their newspapers’ Web “Don’t imitate the models’ walk as soon as and attitude. “It’s more of a coincidence,” said an H&M sites, here are excerpts from the past week. you leave the show.” spokeswoman. “It’s unfortunate we happen to have some of the same models.” On Marc Jacobs, before, during and after the runway show: On model behavior: She noted that the retailer’s campaign, lensed by Cathy Horyn, on her blog for The New York Times: “I’m Selita Ebanks, for New York magazine: “Later was Solve Sundsbo last spring, was in a style H&M felt was sitting at Les Halles, having a burger with my son, Rag & Bone — we didn’t get the greatest seats, “very modern.” (Inez van Lamsweerde and Vinoodh Matadin and I’m hearing via the grapevine that the Marc which was a downer. All is well, though: I had my shoot Chloé’s ads.) The H&M ads appeared in monthlies Jacobs show, which was delayed until 10 p.m., has fi ancé, Nick, with me, and I admit I was looking and outdoors in the U.S. and Germany, but the now been moved to 11 p.m. Is he going to serve fi erce in my Zara top.” campaign is winding down this week, the spokeswoman breakfast? Several editors here at the restaurant, by said. — Miles Socha chance. Stay tuned….” Maggie Rizer, for Elle: “The end of my journey “I see people were up before the birds to have was a taxi ride to the Phi show. Just as I was a whack at the Marc Jacobs show. Such a delicious about to get out of the taxi, the driver turned debate, I might add. (And ‘rules’ about length and quality around saying ‘What happened to you?’ Being confused, of comment on the blog? Horrors! Let’s build another [I asked] what he meant [and] he replied, ‘You’re soaking prison.) About four minutes into the Jacobs show, after wet and your face is bright red!’ It’s just what you want seeing the fi nale line and then the fi rst of the cutaway to hear before sitting with the best dressed watching the dresses in bugle-beaded black silk or jersey over lingerie, best-dressed and professionally put-together models. I felt he had defi nitely done something different. All So, as one would, I ducked into the closest Starbucks, the time I say to young designers, ‘Give me a new threw some water on my face, gave myself a free pass and contemporary version of sexiness. Show me something speed-walked into the show (being nearly 35 minutes late other than a sweetheart neckline, a corseted waist and an by now). No big deal: First I look like a mushroom, then Alaïa homage.’” questionably fully dressed, this time, a wet dog. Oh well — the show was 1,000 percent worth it!” Robin Givhan, on her blog for The More from Rizer: “The Alexander Wang show is this Washington Post: afternoon, and I’m pretty sure I know what I’m wearing. Too similar for comfort? “The show was I just can’t tell if it’s see-through or not? Well, the dress called for 9 p.m. is pretty beautiful. Yesterday, I looked like a mushroom It began at 11:05. and today I’ll be…half-dressed? No, I’d better fi gure this Mr. Jacobs offered out. So, the boots in the picture above: I really, really no explanation. love them. They’re beautiful, supercomfortable, and He left that to his make you look 12 feet tall. They’re fun. A weird thing publicists, who happened last night when I wore them, and I think I was said that he was mistaken for a hooker. And that’s not a good thing. I had waiting for clothes just walked outside to get a cab, and I was walking down to arrive. (As if Christopher Street (mistake #1) and this (I’ll try to be as someone woke him tactful as possible) disgustingly drunk, dirty, homeless up Monday morning man came up to me and said, ‘Oh baby, if I was your and startled him man, I’d love you all night long.’ Yeah, I threw up a little with the news that bit in my mouth.” he had to prepare a spring collection. On show time: Hate it when that Horyn: “Last night I bolted out of the L.A.M.B. show, happens.) Before nearly knocking over the publicist Paul Wilmot. Sorry, Paul. NEW AT TIME INC.: The Time Inc. Business and Finance the show began, If ever there was a reason for a pop star to concentrate on Network, which includes Fortune, Money and Fortune Mr. Jacobs did Robin her vocal skills, it was Gwen Stefani’s fashion meltdown. Small Business magazines, and cnnmoney.com, has been not apologize for Givhan Among the words I wrote in my notebook, until my pen rebranded as the Fortune/Money Group, starting today. keeping people came to a stop, were ‘blob,’ ‘very last season,’ ‘bad Group president Vivek Shah said he is creating a new waiting. He had invited people to come see his show. He secretary,’ ‘astonishingly bad’ and ‘Ditzville.’ I’m amazed sales and marketing organization that will be overseen wants them to treat him and his work with respect and — now — I had that much to say.” by one executive (who has yet to be named) who will be yet, the delay apparently did not call for an apology. Would responsible for all print and digital advertising revenue. it have killed him to send an intern to Kinko’s to make The Fug Girls, for New York magazine: “Marchesa designers In an internal memo to employees, Shah said: “We will copies of a note of apology to place on each seat? Would Keren Craig and Georgina Chapman were marked for second- conduct an exhaustive search to identify the right person that somehow have lessened his reputation as the arty, row seats [at Jennifer Lopez’s show], but were able to plop for this key position.” cool kid who doesn’t give a shake?” down in the front row. One photographer even whispered, Also, as part of the reorganization, Hugh Wiley, group Her advice on when to start a show: “When the big hand ‘Hey, that’s the chick that’s dating that guy!’” associate publisher, is now the publisher of Fortune, and is on the 12 and the little hand is on the 9, it’s time to Brett Wilson, previously associate publisher/North America start the show.” On door policies: for Time magazine, is now the publisher of Money. They Fug Girls: “We were loitering outside Calvin Klein, will both report to the new head of ad revenue. Wiley and Jezebel: “Not only is Marc Jacobs on every editor’s doing our usual ‘are we in the right line?’ dance along Wilson also will be hiring marketing directors to assist in s--t list, including Vogue editor Anna Wintour’s, he should with everyone else, when things got a little exciting. Anna the development of brand-level opportunities. In addition, probably also keep an eye out for some PETA-hurled red Wintour stopped…and looked right at us. And gestured! Alan Ives is CNNMoney’s new senior vice president of paint. His on-and-off boy toy Jason Preston reportedly And then we realized that she was not, in fact, giving one sales. Ives joins the Web site from ABC, where he was vice showed up to Marc’s show and after party with a dead- of her henchmen the high sign to take us out once and president of digital media sales. mouse brooch pinned to his lapel, designed by Jacobs for all, nor was she calling us over to tell us that she just As part of the restructuring, group publisher Mike himself, of course. Discuss: Was Marc more talented when loves our shoes — but rather that she was pulling a Vogue Dukmejian and Lisa Bentley, group associate publisher, are he was a slightly chubby blow-ho? Either way, Benjamin staffer standing near us out of line to come inside with leaving Time Inc. Michael Federle, group publisher, has Moore “Tricycle Red” will add a much-needed splash of her. We’re pretty sure our hearts will start beating again agreed to stay on through the end of the year as a senior color on that roadkill.” any minute now.” adviser to Shah. And, on his rant in WWD: “Jacobs has until February Fortune, meanwhile, has hired Suzanne Kapner as a writer to think about where he’s going to show his fall 2008 On downtime during shows: for its Web site. “I will cover retail and other areas,” Kapner collection: snooty, impatient New York or snooty, Givhan, on visiting the new Saks Fifth Avenue shoe told WWD. She will join Fortune Sept. 24 from the New impatient Paris. Marc, seriously, you might want to think department during the two-day taxi strike: “And how smart York Post, where she has worked for more than four years. about this one. New Yorkers just yell when made to wait; were those Saks folks to invite over a bunch of fashion Changes also took place over at competitor Condé Nast Parisians will literally fl og you with baguettes if you pull editors, ply them with alcohol and then let them loose Portfolio on Thursday, as Dan Golden was named a senior that kind of crap.” in the shoe salon? Oh yeah, a spectacular pair of Chloé editor, effective in October. Golden also will contribute pumps in chocolate brown had my name all over them. pieces to the magazine. He joins Portfolio from The Wall Tracy Lomrantz, for Elle: “I arrived [to Marc’s after party] So what if they had a 4-inch heel. The taxi strike ends Street Journal, where he served as deputy chief of the with a massive hangover, was handed a gift bag and, when on Friday!” Boston bureau. — A.W. GIVHAN PHOTO BY JOHN AQUINO; MORTIMER BY STEVE EICHNER BY JOHN AQUINO; MORTIMER GIVHAN PHOTO BY WWD, FRIDAY, SEPTEMBER 14, 2007 19 WWD.COM Dillard’s Pressed for Sustainability Reports Sale Chatter About Clarins Continued from page 2 hareholders are pushing Dillard’s Inc. to re- steps the company is taking to better identify, consolidation target for years because of its niche market posi- Slease sustainability reports on environmen- assess and control for sourcing risks. Becoming tion,” said Antoine Colonna, analyst at Merrill Lynch in a report tal, social and governance performance. more transparent can help the company increase called “Lap of Luxury IV, No Trojan War This Time Round,” which Christian Brothers Investment its competitiveness, reduce risk was published on Aug. 29. Services Inc. said in a statement and enhance the credibility of its He continues, “Besides a tie-up with L’Oréal, which could raise an- that a recent regulatory filing existing supplier code of conduct. titrust issues, the company could attract a long list of natural bidders. by the retailer indicated that This type of transparency is an im- These include Estée Lauder, which is still searching for a sizeable 46.4 percent of the votes cast by portant aspect of corporate social purchase to bolster its international operations, to Shiseido, which we shareholders in May had urged responsibility and is a critical tool believe probably has the most compatible corporate culture, or even the company to prepare a sus- for building trust with investors Beiersdorf, for obvious back-offi ce synergies and R&D capabilities. tainability report. and the public.” “At risk of being contrarian, we are inclined to believe the Courtin The Dillard’s shareholder reso- New York City Comptroller brothers will block any approaches for a while,” he writes. “More lution was sponsored by CBIS, the William C. Thompson Jr., invest- specifi cally, we would not be surprised if the group either signed an Connecticut Retirement Plans and ment adviser to the fi ve New York intermediate strategic agreement (for instance, with YSL Beauté) or, Trust Funds, the New York City City Pension Funds, said in the more radically, opted for an LBO [leveraged buyout], the scenario we Pension Funds and Amalgamated statement regarding sustainabil- consider to be the most likely at some point in the future.” Bank’s LongView Collective ity reports: “Shareholders believe The other analyst believes a L’Oréal takeover “would not be such Investment Funds. this information is necessary for a crazy idea. L’Oréal has The Body Shop in the masstige market [and] Apparel manufacturers and re- making well-informed investment Sanofl ore in the natural part of the active cosmetics market, and tailers such as Gap, Nike, Target decisions, as it speaks to the vi- Clarins would give a natural edge to L’Oréal’s luxury skin care brands,” and Timberland have “recognized sion and stewardship of manage- he said, adding that Clarins’ Thierry Mugler and Azzaro fragrances the growing relevance of global ment and can have significant could make nice additions to L’Oréal’s brand portfolio, as well. labor standards practices and impacts on a company’s brand, That analyst, like other industry sources, maintains he does not have disclosed their supplier codes of conduct reputation and on shareholder value. Given the believe Clarins is currently being actively shopped around for an in publicly available reports,” said CBIS. high number of votes cast in favor of the resolu- eventual buyout. Christopher Smith, corporate governance re- tion, shareholders have sent a clear message to After the French Bourse shut Thursday, Clarins reported that search analyst at Amalgamated Bank, said in a Dillard’s management that they are concerned its fi rst-half 2007 net profi ts fell 12.4 percent to 36.7 million euros, statement, “We hope that Dillard’s will join the about these issues, and now Dillard’s should ad- or $48.8 million at average exchange, versus the same prior-year ranks of other retail industry leaders and issue dress those concerns.” period. At constant exchange, net profi ts were down 6.1 percent. a sustainability report that would include the — Vicki M. Young Clarins’ operating profi t dropped 23.5 percent to 40 million euros, or $53.2 million. At constant exchange, it decreased 17.1 percent. Operating margin, at 8.08 percent, declined 2.9 points in the half. As reported, Clarins registered fi rst-half net sales of 494.6 mil- lion euros, or $658 million, up 4.2 percent year-on-year. At constant Hervé Martin Heads to Baccarat exchange, they rose 6.9 percent. PARIS — Trading leather for crystal, industry WWD fi rst reported on July 25 that Martin The company said it sold a portion of its stake in L’Occitane veteran Hervé Martin has been named chief was headed to Starwood Capital, parent of for 133.2 million euros, or $177.1 million. Thanks to that move and operating officer at Baccarat and charged with Baccarat. He was most recently Ferragamo’s a positive free cash fl ow of 74.4 million euros, or $98.9 million, spearheading its global expansion. general manager, product and marketing. Clarins posted a “record level” of net cash, now standing at 129.2 Martin, a veteran of Kenzo, Louis Vuitton, While known primarily for its stemware, million euros, or $171.8 million. Cartier and Salvatore Ferragamo, is slated to vases and chandeliers, Baccarat has recently Clarins maintains its full-year guidance of 6 percent revenues become chief executive offi cer next year, suc- made a push into jewelry and accessories, and growth at constant exchange for the year. ceeding the retiring Marc Leclerc, pending is also entering the luxury hotel business. The company’s stock closed down 1.66 percent Thursday to a board approval. — Miles Socha unit price of 59 euros, or $81.90 at current exchange. AAVONVON andand HHelloello TTomorrowomorrow aarere ttrademarksrademarks ooff AAvonvon Products,Products, IInc.nc. ©2007©2007 AVONAVON Products,Products, Inc.Inc. Tomorrow is full of possibilities. Tomorrow of full is Hello Tomorrow say hello to all the beautiful possibilities. or call Ellen Abramowitz at 212-282-7065 today and Avon an Be partner. style Visit avon.com/partners example. inspiring one is collection designed of fashion, fragrance and color. Cynthia Rowley’s artfully It’s our day to innovate and collaborate with visionaries CCynthia Rowley y Fall Beauty Collection by Collection Beauty FFall a n l l

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