2 WWD, wednesday, october 28, 2009 WWD.COM Giorgio Armani Talks Succession stores at the start of the crisis, as luxury retail WwDwednesdSportswearay By Miriam Elder sales fell by more than 30 percent. Armani has FASHION Badgley MOSCOW — Giorgio Armani said Tuesday that he had a presence on the Russian market since This season, bridal designers stack on the special

Mischka s has begun assembling a close circle of executives 2002, when the designer first visited Moscow to 6 effects, from ruching and rosettes to pearls and to take over his company when his reign as one of open a flagship. tulle, to help any princess-for-a-day play the role. the world’s top designers comes to a close. John Hooks, Armani’s deputy general manager “I understand that eventually I will have to who was recently appointed deputy chairman of GENERAL pass things on,” Armani told a crowd of report- the board, said the global markets appeared to After decades of taking it slow overseas, Limited ers and admirers here, where he will be present- give signs of recovery in recent weeks, but it was 1 ing the fall collections of both Giorgio Armani too soon for optimism. “It’s still tough,” he said. Brands Inc. is charged up and aims to double and Emporio Armani. (Among others recently international revenues to $2 billion in three years. “I am already organiz- promoted at Armani, 2 Strength in North America and new store openings ing an entire team around Giorgio Armani effective Jan. 1, are worldwide boosted Tommy Hilfiger Group’s me who understands what Gianni Gerbotto, who first-half sales 3.4 percent to $1.08 billion. I do and will be, at some has taken on board re- Advanstar’s MAGIC and Project trade shows in point, ready to step in and sponsibility for finan- 4 continue what I do,” he cial management and Las Vegas will be staged together for the first time said. “Of course, I am not investments, and Livio at the Mandalay Bay Events Center in February. eternal. There comes a Proli, who will succeed As more brides postpone weddings and purchases, time when you must hand Gerbotto as general 10 bridal firms are sharpening prices, shortening it over.” manager of Armani.) delivery times and getting more creative. The 75-year-old designer, He detailed no plans The ING New York City Marathon on Sunday is a looking tan but thin after to open new stores in 12 an attack of hepatitis this Russia, which boasts major marketing opportunity for brands ranging summer, has long kept two Giorgio Armani from Asics to DKNY and Tiffany. mum on his plans to choose stand-alone shops, 14 The Consumer Confidence Index fell unexpectedly a successor to the fashion six Emporio Armani in October to 47.7 from 53.4 in September, the empire he built. He contin- stores and 240 stockists lowest reading since July. around the country. ued that line on Tuesday, Devi Kroell’s new Madison Avenue store is an asking the crowd: “I don’t Russia, where a 15 amalgam of what the designer stands for: look bad yet, do I?” small sector of the Retirement was not yet population is known daring new design steeped in the past. on his mind, he said. “This for its love of extrava- Classified Advertisements...... 15 is my life. No one can step gant spending, rep- To e-mail reporters and editors at WWD, the address is away from their life.” resents 5 percent of [email protected], using the individual’s name. Armani was in Moscow Armani’s wholesale WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 to promote his collections sales, compared with FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. in a market that has been 10 to 11 percent in VOLUME 198, NO. 89. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in March, April, June and ravaged by the global eco- China, Hooks said, not- August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance nomic crisis. ing many Russian cus- Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé tomers prefer to shop in Europe. Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice Sitting in the gilded halls of GUM, the land- President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and mark shopping center on Red Square, Armani The company will open 40 to 50 stores world- at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services said he had faith in the Russian market. He is wide in 2009, he said, and plans to execute a Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box the first major designer to visit the Russian capi- similar strategy in 2010, despite the crisis-led 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK tal since the economic crisis hit last fall. hit to profits. ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or “Few capital cities have made the impres- Armani will present fall women’s wear and visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected sion on me that Moscow has,” he said. “There’s a men’s wear for Emporio Armani at GUM on address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, strength here, an energy, a great potential.” Tuesday night, and Giorgio Armani fall women’s you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy Designers like Stella McCartney and wear and men’s wear on Thursday at the luxury of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, Alexander McQueen shuttered their Moscow Barvikha complex on Moscow’s outskirts. please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS Hilfiger First-Half Sales Gain 3.4 Percent SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. By Samantha Conti The company said the addition of handbags, footwear and new product groups at Macy’s re- LONDON — Double-digit growth in North sulted in sales growth of 23.3 percent. DAILY We are firewalling off America, coupled with favorable currency fluc- Gehring said sales at Hilfiger’s new tuations and new store openings worldwide, Manhattan flagship are “substantially ahead “ boosted first-half sales at Tommy Hilfiger Group of plan,” and have been given a boost by in- QUote international from the U.S. by 3.4 percent to 772 million euros, or $1.08 bil- ternational customers taking advantage of the lion, from 747 million euros, or $1.05 billion. weak dollar. He said the U.K. business, too, was domestic business. We don’t want to go All figures have been converted at average strong, thanks in part to tourists trading on the exchange rates for the six-month period ending weaker pound. down the dark hole of being successful Sept. 30. In the six-month period, sales in Europe fell Meanwhile, chief executive officer Fred 6.4 percent to 365 million euros, or $511 million, there and getting screwed up here. Gehring said the group’s plans for an initial pub- from 390 million euros, or $546 million, due to ” lic offering remain “on ice,” although a stock mar- a slowdown in wholesale volumes due to more — Leslie H. Wexner, Limited Brands Inc. chairman and ket listing is still part of the company’s vision. cautious buying, the statement said. chief executive officer, on international expansion. Page one. “We are going to consider it for sure, but In the period, the company also reduced its when we go depends on how the market evolves. European customer base by 15 percent in a bid CORRECTION We’ll do it when the time is right,” he said to consolidate its wholesale portfolio. Ruffian is based in Manhattan. This was incorrect in a story on Tuesday. “At the moment, however, we are not In Japan, sales were up 20.1 percent, thanks page 8, Tuesday. actively thinking about it. We are working on entirely to currency fluctuations. They would building the business.” have decreased 1.8 percent at constant currency Although the company, which is owned by rates, the company said. Sales at franchises in Apax Partners, had never formally announced Central and South America, the Middle East and TODAY ON plans for an IPO in 2007, it was no secret it was Asia were up 9.8 percent, but flat at constant ex- preparing to list on Euronext, the pan-Euro- change rates. pean stock exchange. The company put those Gehring said he was particularly proud of the plans on hold in January 2008 because of vola- interim sales increase because the company’s tile market conditions. attitude over the past six months has been “less Gehring said he was upbeat about the current growth focused” — and more concentrated on half, despite the “unstable” environment. streamlining operations. WWD “The past six months have been such an un- “When the crisis hit last October, we said to .com usual time, but I do think we have left the tough- ourselves, ‘Let’s not be too hung up on growth, • More images from Halloween er period behind us. Hopefully, we are at the and focus instead on the balance sheet and work- end of the crisis,” he said, adding he expected ing capital.’ So we looked at improving efficien- costumes from the past second-half sales growth to be “more or less” in cies, processes and inventory levels — and we are • Additional looks from line with the first six months. ahead of our aggressive plans,” Gehring said. recent bridal shows Hilfiger said sales in North America rose 13.1 Forty new store openings in the six-month • Featured Images percent to 324 million euros, or $453.6 million, period took Tommy Hilfiger’s global retail port- The Greenwich Village from 286.4 million euros, or $401 million, due to folio to 950 units. About 50 percent of those are • Global breaking news Halloween Parade in 1984. strong growth at retail. wholly owned and operated. • Daily stock prices WWD, WEDNESDAY, OCTOBER 28, 2009 3 WWD.COM H&M Sees Room to Expand in North America

By Sharon Edelson The newnew presidentpresident ofof H&MH&M NorthNorth AmericaAmerica seessees growth opportunities in the U.S. and Canada. Daniel Kulle, H&M’s new president of North America, has a can- growth opportunities in the U.S. and Canada. do attitude. Neither the recession that has sapped consumers’ fervor to shop nor the competi- tion from lower-priced mass merchants has dampened Kulle’s desire to expand in the U.S. “The potential in the U.S. market is very big,” he said. “We have the strength of a very good business. We have the people here. We have logistics, with three distribu- tion centers. We have the framework to move more [product].” Of H&M’s 169 U.S. stores, most are on the East and West Coasts and in the middle of the country. Now the retailer wants to make a move on the South. In addition, Kulle said, “there’s loads of potential in Manhattan, Chicago and Los Angeles. We have seen that the U.S. customer likes us.” At the opening of H&M’s 10th Manhattan unit, a 25,758-square-foot, two-level store that bowed in May on the corner of 86th Street and Lexington Avenue, 200 people waited in line for the doors to open. Meanwhile, a store opening at the Florida Mall in Orlando drew more than 800 consumers. “At the moment, we have to open stores in the big cities,” Kulle said. “The next is Phoenix. In the long run, we’ll be looking everywhere. We will not turn down any op- portunities. We can open smaller stores. That’s the beauty of it. We can make a big, 20,000-square-foot store or a 10,000-square-foot ladies’ store in South Coast Plaza [in Costa Mesa, Calif.]. We have that flexibility.” Kulle said stores could be segmented into women’s only, men’s only and France, Germany and Spain are H&M’s top growth markets in Europe. H&M children’s only. will enter South Korea in the spring and open its first store in Beijing later this “Every day we’re looking at building more distribution centers,” he said. “We year. “In China, we are really entering with full speed,” Kulle said, noting 13 want to lower operations and transportation costs. Retailing is a lot of logistics.” units are already operating in Mainland China. The retailer has been successful H&M, which was one of the first retailers to make daily deliveries to stores, in Russia, where four units have bowed. “We have a very good franchise opera- ships the same core assortment to all its units, but tests new products in tor in the Middle East, where we’re in eight countries,” he added. smaller volumes in certain locations. Stores in big cities receive an extra H&M has a diversity of price, Kulle said, citing modern classic suiting for men fashion assortment and trendy merchandise. Use of organic cotton and re- and the tailored concept for women at the high end. Items in the Jimmy Choo cycled fabrics, including those made of wool and polyester, is growing. “It’s collection bowing Nov. 14 are pricier, including leather over-the-knee boots for a demand from customers,” said Ann-Sofie Johansson, head of design. $299. H&M, which was one of the first fast-fashion brands to partner with de- “There’s an opportunity for new customers who may have shopped signers for one-off collections, is taking a slightly different tack now that the at department stores to come to our stores,” Kulle said. “Our garments practice has become ubiquitous. Rather than introduce another apparel and price points are the message.” line, H&M tapped Jimmy Choo to design its signature sexy footwear, Not that H&M has escaped the economy unscathed. Hennes & handbags and jewelry at a fraction of Choo’s regular prices. Choo’s Mauritz AB reported a worse-than-expected dip in September sales, first foray into apparel includes a blue suede one-shoulder dress, citing the continuing recession and unusually warm weather in most $129; a black jumpsuit, and a suede trimmed dress. of its markets. Same-store sales in September declined 8 percent H&M launched its own shoe collection for fall and plans to con- compared with analysts’ expectations of a 7 percent drop. The re- tinue to develop it. “We’re definitely growing shoes,” Kulle said. tailer in August reported a weaker-than-expected 11 percent decline A designer partnership with Sonia Rykiel will yield lingerie in in comparable-store sales. December and continue in February with a Rykiel knitwear line and ac- cessories for women and girls. “No one has done a designer collaboration for children’s wear,” Kulle said, perhaps overlooking Stella McCartney’s recent tie-up with GapKids. There’s an opportunity for new customers H&M employs more than 100 in-house designers at its headquarters in “ Stockholm. Johansson works closely with eight designers from each de- who may have shopped at department stores partment, identifying trends and colors for the following season. “I travel quite a lot, go to flea and vintage markets and go to movies and read maga- to come to our stores. zines,” she said. H&M is a flat organization and its culture is one where ” — Daniel Kulle, H&M employees are developed and promoted internally. Johansson’s first job was working the till at an H&M store in Stockholm. After two years, she “We have been affected by the current situation in the economy,” Kulle wrote a letter to Margareta van den Bosch, H&M’s former creative ad- said. “When the economy comes back, people will feel that H&M has the viser. Johansson put together a portfolio and was hired as a design assis- products for them. We’ve made improvements in the value chain.” tant. “Now I’m head of design taking over for Margareta,” she said. Topshop, which opened in March, goes head-to-head with H&M in Concerned its work environment was dated, H&M recently moved to Manhattan’s SoHo neighborhood, where both retailers have stores on gleaming white offices with good light and an excellent canteen. The Broadway. “It’s hard to compare one shop in New York City,” Kulle said, company is now remodeling its Fifth Avenue flagship for the same rea- referring to the U.K. retailer. “[Topshop is] not new for us because we son. “We’re making a statement that we are a fashion company,” said have met them in Europe. Competition makes us stronger and brings traf- Kulle. “The store will have a ‘wow’ component. Ladies and men’s are fic. From my perspective, the U.S. is a very tough retail market. We bring divided on different floors. There are huge fitting rooms, updated fix- ideas from the U.S. to Europe, the Middle East and Asia.” tures and graphics and many points of sale.” Kulle, whose responsibilities include the 55-unit Canadian market, The flagship will be the first U.S. unit to have the new design, which said there’s still room to expand there too. “We’re hoping to have more A look from the Jimmy Choo was adapted from H&M’s top store in Tokyo. The redo will be unveiled stores in the west in places like Vancouver,” he said. for H&M collection. on Nov. 5. Kulle said the SoHo unit will be remodeled next year.

move more merchandise, one that introduces them to GSI Commerce Buys Rue La La Parent new customers,” Rubin said. “The thing that has been amazing about the private sale space is how engaged By Cate T. Corcoran ships GSI has with retailers and brands around the world consumers are,” he said, noting that about 10 percent and their sophisticated infrastructure, we believe they’re of members visit daily and 70 percent of members visit One of the largest e-commerce service pro- going to turbocharge our ability to build this into a global monthly. “I look at the private sale space as a new way viders, GSI Commerce, is the first company to make a company,” said Retail Convergence ceo Ben Fischman. to shop.” major acquisition in the quickly growing channel of on- Retail Convergence will remain based in Boston, Better to put GSI’s weight and muscle behind Rue La line private sales. with no changes in management or operations, said both La with its 1.2 million members, he said. “I think many On Tuesday, GSI Commerce signed a definitive agree- companies. Retail Convergence will take advantage of brands will use both services.” ment to purchase Retail Convergence, the parent of pri- GSI’s infrastructure, such as its worldwide distribution Rue La La doesn’t only sell apparel, but also travel, vate sale company Rue La La and off-price Web store centers in such locations as Canada and the U.K., and beauty and other categories. Likewise, GSI’s customers Smart Bargains Inc., for $350 million in cash and stock. will start selling overseas in the near future. include music, video, sporting goods and pet companies. The move will increase GSI Commerce’s revenue by When Rue La La hits the U.K., it will face Vente-Privee, Retail Convergence has 184 employees and is ex- about $230 million this year; GSI had revenues last year the original online private sale company, which sells ev- pected to generate $230 million in revenues this year. In of $966.9 million. The deal gives Rue La La the infra- erything from designer apparel to cars, and had revenues the year ended September 2008, the company lost $7.5 structure to expand quickly and globally, and positions of about 491 million pounds, or $813 million, in 2008. It million, but over the next 12 months, cut its losses to GSI as a major player in the new channel. Online private started in France and sells in the U.K. and Europe. $500,000. GSI said it expects the acquisition to be accre- sales already generate more than $1.3 billion in revenue Under the terms of the agreement, Retail Convergence tive to its earnings in fiscal 2010. a year worldwide and have attracted dozens of start-ups will receive $180 million up front, with $90 million of that Gilt Groupe, which is on track to do $400 million in and tens of millions in venture capital investment. in cash, and another $90 million in 4.5 million shares of sales this fiscal year, received a third round of $43 mil- “In terms of long-term potential, we believe the pri- GSI stock. If Rue La La hits yearly targets for three years, lion in venture funding in August. Rue La La had $25 vate sale business will be a multimillion-dollar busi- it will receive $170 million more, mostly in cash. million in backing. ness and we think we’re going to be a global leader in At first, GSI thought to create its own private sale This is not the first time an e-commerce service pro- this business,” said GSI chief executive officer Michael business, since it already makes e-commerce sites for vider has ventured into private sales. Earlier this year, Rubin. “There are only two companies that are doing a brands and retailers, including private sales for its own Onestop Internet Inc. of Rancho Dominguez, Calif., great job in the U.S.,” he said, referring to Gilt Groupe brands’ customers, but quickly decided it would be bet- bought Billion Dollar Babes, an offline stager of limited- and Rue La La. “With us behind them, we will help take ter to acquire an existing business. GSI’s apparel clients time multibrand sales, and built out their online private the business even faster and further.” include Burberry, Quiksilver and Levi’s. sale business. The company recently received $13.3 mil- “Combining [our fast growth] with the deep relation- “Our clients are looking for an additional vehicle to lion in funding from Bessemer Ventures. 4 WWD, WEDNESDAY, OCTOBER 28, 2009 WWD.COM

Advanstar Shuffl es Las Vegas Shows FASHION SCOOPS CAMPBELL’S RETURN: Naomi Campbell could be REMODELING L&T: Among Manhattan’s big, bustling headed back to court. Moodform Mission, a venture By David Lipke and Jean E. Palmieri department store fl agships doing massive renovations, that helped produce and market Naomi Campbell, Lord & Taylor has long seemed relatively dormant. Cat Deluxe, Seductive Elixir and other cosmetics and ADVANSTAR COMMUNICATIONS’ MAGIC AND PROJECT TRADE But now its owner, the Hudson’s Bay Trading Co., is fragrances for the supermodel, said it was cut out of shows in Las Vegas will be staged together for the first time at the investing in the 11-fl oor, 650,000-square-foot unit, its portion of the income last year and sued Monday Mandalay Bay Events Center Feb. 16 to 18. The two events will con- on Fifth Avenue between 38th and 39th Streets, for breach of contract in New York Supreme Court. tinue to be organized and operated as separate shows, and will be with a plan to overhaul the main, second and 10th Moodform claimed Campbell has made millions held on different floors of the convention center in order to maintain fl oors. Much of men’s wear on one, an assortment of dollars on the products — which were sold by their distinct identities. of shirts, furnishings, accessories, socks, underwear affi liates of Procter & Gamble — and acknowledged MAGIC is moving from its longtime home in the Las Vegas Convention and sleepwear, will relocate to 10, where the rest it received a portion of Campbell’s fragrance and Center, while Project will relocate from its traditional base at the Sands of men’s is housed. That will free up space on the cosmetics revenues from 2001 through 2008. Expo and Convention Center in The Venetian hotel complex. main fl oor to grow the more But the suit claims Campbell MAGIC’s exit from the LVCC frees up space for the women’s robust cosmetics and women’s repudiated the contract without WWDMAGIC show to expand there and for the new FN Platform foot- accessories categories. Second- James justifi cation and began to sell the wear show to make its debut, also on Feb. 16 to 18. Those two shows fl oor renovations to expand Franco goods under a substitute licensing are operated by Advanstar Communications in joint ventures with contemporary sportswear are agreement. “We think what Fairchild Fashion Group, publisher of WWD and FN. under way. About three years ago, happened is she just decided to “Moving the men’s shows to Mandalay Bay allows us the thought was to convert a lot of keep all the money for herself and to accomplish several things,” said Joe Loggia, chief the fl agship’s unproductive selling not share it anymore,” said Daniel executive offi cer of Advanstar Communications. space to offi ce space and build a Bright, an attorney at Schwartz, “It’s an upscale environment and we can contin- tower atop the building. Lichten & Bright, representing ue to provide separation of the market segments, Before the recession hit, the Moodform. “There was nothing while making it convenient for buyers to shop building was said to be worth precipitating it.” The suit is WWD both shows, and providing more space for the between $300 million and seeking undetermined damages. women’s show [in the LVCC] to make it commen- $400 million and account for Campbell’s representatives could Men’s surate with the stature of the show.” about $140 million in sales, or not be reached at press time. In addition to the move to Mandalay Bay, the 10 percent of the chain’s total MAGIC men’s show will undergo a dramatic overhaul of volume. Other big Manhattan TO THE MAX: It’s not often these its fl oor plan and show design. Rather than having one massive hall fl agships, such as Bloomingdale’s days that you see excess like with segmentations by market, the February show will feature sepa- and Saks Fifth Avenue, generate Champagne fl owing freely and rate halls for each distinct market: Menswear, Street, Premium and far greater percentages of their oversize jewels worn with gusto. S.L.A.T.E. (The latter is focused on progressive streetwear brands.) The total volumes, between 20 and But on Monday night at Saks halls will be separated by 30-foot-high fabric walls, creating physical 25 percent. Fifth Avenue in New York, revelers divisions, unlike at previous MAGIC shows. celebrated Tony Duquette Fine “MAGIC can be a little overwhelming when you fi rst come in and see FUNNYMAN FRANCO: Celebrities Jewelry creative director Hutton this massive hall. This new layout allows each market to have its own cul- with contractual ties to the Wilkinson’s new tome, “More Is ture, personality and energy,” said Sam Ben-Avraham, president of Project, fashion world tend to take those More” ($75, Abrams), with such who also is working on the redesign of MAGIC. “We started with a blank connections very seriously — aplomb. Harper’s Bazaar editor in slate and rethought how you create and navigate a big show like this.” always walking the red carpet chief Glenda Bailey — who cohosted Ben-Avraham acknowledged some vendors could worry the separate fl awlessly dressed and speaking the event along with Saks president halls would impede casual traffi c fl ow, as some buyers will only shop perfectly on point. Which is why and chief merchandising offi cer Ron certain halls. “But I think what this does is focus buyers on their key it’s so refreshing to see James Frasch — pulled out a gem-studded vendors. It makes it more effi cient, rather than creating fake traffi c Franco have fun with the hand that necklace with oversize stones fl ow,” he explained. feeds him. The Gucci spokesman designed by Tony Duquette. “It was a The Project show’s organization and layout will remain consistent told WWD on Friday that if it gift for my 50th birthday,” effused STEVE EICHNER PHOTO BY with previous seasons, including housing a section for women’s brands. weren’t for the brand giving him Bailey, who watched as Wilkinson “I don’t see any reason to change it, as it’s been so successful,” said free clothes, “I wouldn’t know what to wear.” Now signed books, greeted fans and talked jewelry. “After Ben-Avraham. a video has popped up on funnyordie.com in which a maximum of minimalism, this is what the world Some Project vendors may be resistant to the idea of showing Franco spoofs his own commercial for the Gucci by needs,” said Wilkinson, whose second book on so close to MAGIC, added Ben-Avraham, as one of the reasons for Gucci fragrance. When it comes time to name-check Duquette explores the designer’s fanciful aesthetic and Project’s success has been that it offers a unique, trendier environment the fragrance, Franco, doing the voice-over in a elaborate taste in art, decor, horticulture and jewelry. than MAGIC. “People might be afraid of losing that. It’s like making nondescript recording booth, pronounces it “Gookie by “What we all need is a visual stimulation of beauty.” someone who’s happy in the suburbs move to the city,” he explained. Gookie.” A producer corrects him and points out that “But I think deeper to that thought process, it makes a lot of sense to as a spokesman he should know how to say the label. KEEPING THEIR FIGURES: Valentino was spotted have these shows together, as 85 to 90 percent of Project buyers also “Yeah, whatever,” Franco says. “I always thought it having lunch Tuesday afternoon at Sant Ambroeus, shop MAGIC. These two shows can live together and maintain their was Guckie.” He gives it a dozen more tries, getting the Italian restaurant on Madison Avenue between own identities, but also feed off each other.” increasingly frustrated, until the label devolves into 77th and 78th Streets. He was dining with Giancarlo The MAGIC show will be on the fl oor above Project; the MAGIC fl oor a mush of slobbering sounds. “F--k you, Gooshi by Giammetti and two friends, chatting away in Italian, will be larger than Project. Guckie,” Franco fi nally pleads at the end of the video as well as with the maître d’, who came over several Chris DeMoulin, president of MAGIC International, said the organi- and then bursts into tears. No word on whether the times to speak with them. They ate well, but left their zation had received many requests over the past seasons to bring the henley or cardigan Franco is wearing in the fi lm is by complimentary chocolate candies at the end. That two big men’s shows together. Project was staged at Mandalay Bay last the Italian house. night, Valentino was feted at a party uptown at VBH. February “and had a good response,” he noted. MAGIC is working with customers such as the Doneger Group, Macy’s and others, who have traditionally taken rooms at the LVCC for meetings and presentations during the show. “We’re working with them American Friends Fete Israel Museum on their space needs for either the convention center or Mandalay Bay or both,” said DeMoulin. NEW YORK — The At the LVCC, WWDMAGIC will move from the North Hall to the American Friends of the Central Hall, which was previously occupied by MAGIC Men’s. The Israel Museum gala on move will provide a 50 percent larger space for the women’s show. FN Monday drew a fashion- Platform will launch in the North Hall, and Sourcing at MAGIC also able crowd that included will move into the LVCC from its previous location in the Hilton hotel. Vera Wang and her hus- Loggia noted WWDMAGIC and FN Platform are natural adjacen- band, Arthur Becker, cies, as an increasing number of buyers shop both women’s apparel William Lauder, Julie and footwear. Conversely, there has been growing separation between and Billy Macklowe and men’s and women’s apparel buyers. Josh Bernstein, star of When WWDMAGIC launched in 1995, retailers often bought both the Discovery Channel’s men’s and women’s wear together, said Loggia. “But today, there’s less “Into the Unknown.” crossover than there used to be,” he said. “More and more retailers are They came to Cipriani Martin Miller, Jerome coming to Las Vegas specifi cally for women’s.” 42nd Street here to cel- Fisher, Madge Miller STEVE EICHNER However, FN Platform will offer both men’s and women’s foot- ebrate the museum in and Israel Museum wear brands, and there will be shuttles — either buses or limou- Jerusalem, which is in director James Snyder. PHOTOS BY sines — between Mandalay Bay and the LVCC. “It will be very ef- the midst of a major ren- fi cient,” said DeMoulin. ovation to be completed evening, artist Ellis G. was asked to create an Loggia called FN Platform an alternative to the WSA shoe show, in time for its 45th anni- original work on-site, so he transformed one of noting the latter often has issues with dates that overlap with New versary in May. the decorative canvases into a piece inspired by York women’s market week. FN Platform will be divided into fi ve dis- “Ninety percent of the the theme. The work was then auctioned. tinct areas, including women’s fashion, men’s fashion, athletic/outdoor, museum is now under Wang, who attended the gala with her comfort and children’s. Brands that already have signed on to exhibit construction, and we still friends Stacey and Matthew Bronfman, said, include Nine West, Steve Madden, Vince Camuto, Stuart Weitzman, have half a million visi- “I have never been to Israel but I am dying to Hugo Boss and DKNY. tors a year,” museum di- Julia Macklowe go. I’ve been trying to get a trip planned for the The moves by the Advanstar Communications-owned shows have rector James Snyder said. past four years.” not impacted the plans of other Las Vegas trade shows. MRket is sched- The event, which raised more than $2.3 mil- Other guests included Jerome Fisher, uled to remain at The Venetian hotel, from Feb. 16 to 18, while the Off- lion for the museum, had the theme “The Written Stefania and Alberto Sabbadini of Sabbadini Price Specialist show will remain at the Sands Expo and Convention Word,” and many of the night’s touches under- Jewelry, Madge and Martin Miller, as well as Center, from Feb. 14 to 17. The Capsule show will be staged at The scored that idea. David Stark, who designed the artists James Turrell, Haim Steinbach, Ghada Venetian on Feb. 16 and 17. ENK Vegas will be staged from Feb. 16 to event, re-created the museum’s logo in a large Amer, Annette Lemieux and Vera Lutter. 18 at the Sands Expo and Convention Center. installation made of newspapers. During the — Marc Karimzadeh SHE’S STARRING IN THE ROLE OF A LIFETIME

NOW YOU HAVE TWICE AS MANY OCCASIONS TO BE A PART OF HER PRODUCTION. FEATURING 12 ISSUES A YEAR STARTING WITH THE JANUARY 2010 ISSUE

PHOTOGRAPH BY DAVINA + DANIEL

IT’S NOT A WEDDING WITHOUT Contact Carolyn Kremins, VP/Publisher, at [email protected] 6 WWD, WEDNESDAY, OCTOBER 28, 2009

Vera Wang As You Like It All the world’s a stage for some brides-to-be. This season, designers stack on the special effects — from ruching and rosettes to pearls and piles of tulle — to help any princess-for-a-day play the role. WWD, WEDNESDAY, OCTOBER 28, 2009 7 WWD.COM Anna Maier Ulla-Maija bridalWWD Reem Acra

Monique Lhuillier

Amsale e n cco ianna

s a d thom an

n ckse i er see, kyle in , george ch O AQUIN N OH J photos by 8 WWD, WEDNESDAY, OCTOBER 28, 2009

Temperley London Nicole Miller Closer Calls Not every bride is into fluff. Some designers are reining in silhouettes for fall 2010, showing trimmer gowns that are cut to fall near the body, but not to look like a second skin.

Claire Pettibone

bridalWWD

iannaccone ericksen and thomas kyle george chinsee, photos by WWD, WEDNESDAY, OCTOBER 28, 2009 9 WWD.COM

Angel Sanchez

Reverie by Melissa Sweet

Farah Angsana

Badgley Mischka

For more, see WWD.com. Ready-to-Wear Report

10 WWD, WEDNESDAY, OCTOBER 28, 2009 WWD.COM Bridal Execs Get Creative in Tough Times By Rosemary Feitelberg The wedding business apparently isn’t recession-proof after all. As more brides postpone their weddings and purchases, designers and manufactur- ers are proving to be more nimble, sharpening opening price points, shortening delivery times and finding unusual designs to try to curtail any procrastination. Like many de- signers and executives interviewed during last week’s shows, Vera Wang offered a sober outlook. “As far as business is concerned, let’s be honest, it’s a bad situation. Like every other company, we lowered prices in the past two years. Overall, we feel very good about the price value we are offering.” Retail consolidation has only made business more challenging. In the past year, Saks Fifth Avenue shuttered its bridal salons, and three well-known East Coast specialty stores also called it quits — Suky Rosan in Ardmore, Pa.; Calvary Bridal in Millburn, N.J., and Yolanda’s in Walpole, Mass. The editorial frontier also shrank, with Modern Bride and Elegant Bride magazines folding shortly before the shows began. Mark Badgley and James Mischka responded to consumers’ cost consciousness by opening their runway show with a line from their new, more affordable Mark and James label. The British designer Alice Temperley unveiled a full-fledged bridal collection in addition to her made-to-order gowns. With more brides or- dering gowns three to five months before their nuptials, Lela Rose said she is working more closely with stores to avoid rush charges whenever possible. The designer is offering more styles at her $1,800 opening price point, too. Even David’s Bridal, a national retail chain known for its razor-sharp prices, played up $99 op- tions, including some that could be worn as separates after the wedding. JLM Couture introduced its Blush label and chief WWD executive officer Joe Murphy sent a pre-market letter to stores emphasizing the need for teamwork. But not everything was driven by price. Angelo Lambrou, who has an East Seventh Street store in Manhattan, will fea- ture his wedding gowns in “Brides for All Nations,” a Nov. 5 runway show sponsored by the United Nations Women’s Guild. bridal Nicole Miller served up more red-carpet-inspired wedding gowns than traditional ones. Saja has branched out into bridal, wedding planner David Tutera has teamed up with Faviana for a new label and Francesco Fino opened his first U.S. store at The Plaza Hotel in Manhattan, where designer Douglas Hannant also opened a store in September. After unveiling a capsule collection of wedding gowns at Bergdorf Goodman, Marchesa presented 19 styles that will be sold exclusively in stores such as Browns in London. Marchesa’s Georgina Chapman and Keren Craig were both married within the past two years, so bridal was a natural extension. Chapman said she welcomed the design challenge. “It is the one day of your life when you really feel you can go for it,” she said. Mark Ingram’s signature Midtown bridal salon will be among the stores carrying Marchesa’s bridal collection. “All the gowns were magical and deftly constructed with an expert hand,” he said. People do bargain. They will say, ‘So-and-so will sell“ me this dress for $4,000. Can you do better?’ — Sara Timko, Sara’s”

Ingram also gave high marks to Monique Lhuillier, Angel Sanchez and Anne Barge. Monique But he said a turnaround is underfoot, as evidenced by “greater traffic, more optimism, Lhuillier higher ticket sales and generally happier brides.” But it hasn’t been that way. Last year the most popular gowns he sold were in the Marchesa Lela $8,000 to $14,000 price range, but this year many will not spend more than $10,000. He Rose said, “Honestly, anyone who tells you that their business is ‘flat’ with last year is prob- ably not telling the truth. So many brides put off their weddings until 2010, that all of the better bridal business suffered this year.” Checking out bridal lines at the Hotel Intercontinental last week, Sara Timko, owner of Sara’s in Branchburg, N.J., said having exclusive lines was the best bet. “People do bargain. They will say, ‘So-and-so will sell me this dress for $4,000. Can you do better?’” Ani Cole, owner of Madison Avenue Bridal, a Covington, Ky., store, said, “They’re visiting their dresses a lot more. It used to be they would come in to look at the dress they wanted, once, twice or three times before buying it. Now they’re coming in at least a dozen times.” Cole said she had picked up a few newcomers — Katerina Bocci, Karen Sabag and Ian Stuart. The Detroit-based Bocci let retailers know that she is part of the Made in Detroit marketing campaign that trumpets local businesses. “I am very happy about being able to provide paychecks for the people who work for me. They depend on me. It’s not just about me.” Bridal executives aren’t the only ones trying to woo cost-conscious couples. Manhattan’s Lower East Side now has a Vegas-style wedding chapel that has a $150 no i

wedding package — photos and invitations included. The Wedding Chapel will get some qu air time on TLC in the docuseries, “Flowers Uncut With Jeff Leatham,” which makes its A debut next month. Leatham, the Four Seasons artistic director, filmed a segment in the Norfolk Street space and left behind $10,000 worth of artificial flowers. Another sign of and John the times is Ritz-Carlton’s “A Vow to Help Others,” which gives couples who have all- sen k c

inclusive weddings the option of donating five percent of the total food revenue from i r E their event to either a charity of their choice or the Community Footprints Fund. Kirstie Kelley, who has a signature line for Disney Fairy Tale Weddings, said as more women wed later in life, they are less inclined to have traditional weddings and will one, Kyle

dress accordingly. Modern and simplistic styles were in demand last week, she said. C With distribution in 110 retailers worldwide, she said, there is talk of Disney opening freestanding bridal stores, but nothing is imminent. Hannant’s business partner, Frederick Anderson, said the company offers a range homas Iannac

of prices, but they are not as low as they were last season. “Obviously, business has T

been really soft and many people are planning their weddings for a year from now,” Anderson said. “What I am looking forward to is next year. That’s when women should

start spending again and we will get out of this rut of lower-priced goods.” Photos by WWD, WEDNESDAY, OCTOBER 28, 2009 11 WWD.COM Limited Eyes Global Growth Continued from page one Martin Waters, executive vice president of the international division. “We learned that our brands have appeal all over the world and we have learned how to make money.” The executives cited “a menu of opportunity” including: • Rebuilding La Senza in Canada, which has struggled in the last two years. • Opening 30 to 40 Bath & Body Works stores in Canada annually over the next few years; by the end of November, there will be 31. • Opening Pink stores in Canada, with the first opened last week and four more bowing over the next few weeks. • Seeking a “really big scale” franchise partner, probably for BBW, to cover expansion across an entire continent, like Europe or Asia. • Testing BBW in travel-related locations including airports. • Adding Victoria’s Secret flagships in strategic markets, including Japan in 2012 at the earliest. • Building Victoria’s Secret Direct overseas from the current $100 mil- lion in volume. Wexner long stuck to the belief that transporting U.S. fashion brands overseas was a losing proposition. However, he now has a different out-

look since the company shed its sportswear businesses — Abercrombie & Isobe uko Y Fitch, Express and Limited Stores — leaving it with the more profitable Victoria’s Secret and BBW brands, and with no significant square footage Tiny growth currently seen in the U.S. Mikio Sakabe DressCamp Dinosaur Still, Wexner sounded a word of caution. “We are firewalling off inter- photos by national from the U.S. domestic business,” he said. “The golden goose is North America. We don’t want to go The firm hopes Japan Fashion Week: From Eighties to Edgy down that dark hole to grow Victoria’s of being successful Secret Direct By Amanda Kaiser “Not everyone is taking risks, but some are there and getting overseas. really trying to get new types of designers. So screwed up here.” TOKYO — Designers here showcased every- that’s partly helping us,” he said. The economy, he thing from frilly Victorian lace numbers to Ota said Japanese buyers tend to be more predicted, will be hard-edged looks with an Eighties feel at the reluctant than their counterparts in the U.S. “fluffing along maybe ninth edition of Japan Fashion Week, which and Europe when it comes to placing orders a year, maybe two. I wrapped its six-day run on Saturday. with new designers. Although there is evi- don’t believe we are Although fewer people attended the spring dence that’s starting to change. seeing the end of the shows than the year before, there are signs that “Fortunately, now the big department world. The world is Tokyo labels are gaining some international stores like Takashimaya, Mitsukoshi and stabilized. Customers momentum — albeit in very small quantities. Isetan are buying more domestic young de- are largely stabi- The number of people attending the offi- signers. It’s good,” he said. lized….I am pretty cial spring shows actually slid to 15,311 from Design highlights of the week included: optimistic about the 17,774 people last year, a phenomenon govern- • Mikio Sakabe’s macabre reworking of heavy- Christmas season. ment-subsidized JFW blamed on some brands metal T-shirts into dresses. We have made prog- choosing smaller venues this season. But • Akira Naka’s edgy form-fitted tailored ress across the en- there were more foreign media and buyers pieces. terprise.…The whole present this time around. Some 249 represen- • DressCamp’s dresses in bold prints fea- mind-set of the busi- tatives of foreign media organizations came turing intricate beading and jewel details. ness is younger, more to the shows, up from 212 last year, while the • Matohu’s fresh geometric prints, kimono- emotional, even the number of international buyers rose to 125 wrap jackets and a blue green palette inspired vocabulary. Women from 19 the year before. by ancient Japanese pottery. are saying, ‘I want Nobuyuki Ota, president of Issey • Tiny Dinosaur’s stunning trench- to be a bombshell.’ Miyake Inc. and chief of JFW’s collec- coat with lantern sleeves and delicate Years ago, it was ‘I tion project committee, said the shows dresses with abstract, kaleidoscopic want to be an angel.’ attracted more buyers from Asia than bursts of color. I am optimistic on a expected and he’s thinking about stag- • Mint Designs’ dainty dresses relative basis.” ing a fashion-related event at next featuring textured fabrics and quirky He cited a sus- year’s World Expo in Shanghai. graphics. tained improvement “It’s very important to get more Overall, retailers had a mixed re- in the performance buyers and press from China,” he action to the week. of BBW and “better said at Tokyo Midtown, the week’s of- Miyako Sekimoto, Matsuya’s fash- execution of ideas” ficial venue. ion director, said she was pleased to at VS. Overall, “there Tapping into the ever-growing see brands like Mint Designs, Matohu has been an im- Chinese market can help designers and Somarta develop a good balance provement through offset sluggish demand in Japan and between creativity and wearable, the fall.” other mature markets. Bain & Co. re- commercially viable clothing. On Monday, the cently forecast that luxury goods sales “That is the consumers’ feeling. $8.6 billion Limited in Mainland China will grow 12 per- They don’t want to spend money on updated its guid- cent this year, while those in Japan clothes they can only wear for one ance, projecting will fall 10 percent. Over the next season,” she said. Sekimoto added third-quarter earn- decade, growth in China and other her store will probably buy more ings per share be- Asian countries could propel Asia past Mint Designs pieces this season, tween zero and a Europe and the Americas to become but can’t increase its overall budget loss of 4 cents versus the largest global luxury market region Akira or pick up any new Tokyo designers its previous estimate Limited plans on opening 30 in the world, the consultancy said. Naka since Matsuya is in the process of of a loss of seven to 40 Bath & Body Works Japanese designers, many of whom renovating its Ginza flagship. to 12 cents, but the stores in Canada annually. run extremely small businesses with Jason Brar, director of a soon-to- outlook for October a string of retail accounts, are facing plenty be-launched e-commerce site called Harajuku comp-store sales worsened to negative low- to midsingle digits, versus of challenges as the economic crisis persists, Freak, said he found a lot of unique, wearable the earlier estimate of roughly flat. Limited’s shares fell on Tuesday consumers trade down to fast-fashion labels clothing that isn’t overly architectural and intel- since analysts had originally expected a better comp-sales perfor- and retailers continue to be hesitant about lectual as Japanese brands can sometimes be. mance.(For more on stocks, see page 14.) stocking untested brands. This month’s news He found bright spots at labels such as Motonari Free cash flow for 2009 (cash flow from operations less capital that Yohji Yamamoto filed for bankruptcy Ono, Ato, G.V.G.V. and Theatre Products. expenditures) is expected to be between $500 million and $600 mil- protection and lost control of his company to “The shows were quite dazzling sometimes,” lion, compared to a previous estimate of $350 million to $450 million. a group of investors dealt another blow to the he said. “I’m not going to buy a lot from any de- Wexner said Limited wants to return to 15 percent growth in the top Japanese fashion industry’s image. signer, I’m going to buy just a few pieces, and I line and 15 percent gain in operating income by 2012, but to reach that Ota said he was surprised the number of want to keep it quite limited on purpose.” target, not met since 2004, margins and sales trends must improve. presentations didn’t decrease from last sea- Takatomo Ogawa, a buyer and representa- Wexner emphasized that better merchandise with “emotional content” son, but instead actually increased slightly tive at Nagoya-based Nara Store, was less up- and the international opportunities are the drivers. “We want to build from a year ago, to 39 events. beat, although he liked Tiny Dinosaur, Suzuki back to that model. We think it’s quite doable,” Wexner said. “We are “The reason is that [the designers] are Takayuki and Mint Designs. not trying to fast dance to slow music.” In 2008, Limited had a 7.9 per- keeping their business,” he said. “But we need “The excitement of the Tokyo collections cent operating margin. more support.” this time was relatively low in terms of collec- As far as the U.S., Wexner said “the next big thing” is the Henri Bendel Designer Mikio Sakabe, who runs his label tions that were unique and introduced new accessories stores. “We think that’s [potentially] a big, big business.” with his Taiwan-born wife, Shueh Jen-Fang, said styles,” he said. He said the new Bendel’s format is in a debugging stage. He also said his retail accounts in Europe are stable and he — With contributions from Victoria’s Secret Sport is another potential big thing. expects the same for his business in Japan. Kelly Wetherille and Koji Hirano 12 WWD, WEDNESDAY, OCTOBER 28, 2009 WWD.COM Marketers Make the Most of Marathon By Jean E. Palmieri On the merchandising front, Asics will be launching its GEL-Kayano 16 model running shoe nationally dur- The ING New York City Marathon on Sunday ing race week, but will offer a special limited edition is more than a 26.2-mile test of endurance and character marathon version in New York City only, Slayton said. — it’s a major marketing opportunity. The retail price will be $150. Companies ranging from Asics, the marathon’s ap- Other activewear brands are also in the mix. Nike parel and footwear sponsor, to DKNY and Tiffany & Co. expects to have Paula Radcliffe, last year’s women’s will tap into the international attention the race gen- winner and the top seed, at the Niketown store on 57th erates with specially branded merchandise, events and Street at 3:30 p.m. Thursday for a pep rally. Nike has other promotions. also introduced the LunarGlide+ Race Collection, The marathon, which is marking its 40th anniver- nine shoes that combine city-inspired design touches sary this year, has come a long way from 127 runners with premium performance benefits that are targeted who paid a $1 entry fee to race several times around to marathoners. Central Park. There will be about 42,000 marathoners Waitz, a nine-time New York City marathon winner from around the world on the Staten Island side of from Norway, will be signing autographs at the expo the Verrazano-Narrows Bridge when the race starts. booth of her sponsor, Adidas, and promote her Grete They were picked from among 105,000 people who ap- Aktiv collection. Waitz, who survived a bout with can- plied to participate. The race is seen by millions on About 42,000 runners are expected to compete Sunday. cer in 2005, has created a collection of men’s and wom- the streets of the five boroughs as well as on television you can go to the gym and work out in.” en’s running apparel, and the proceeds will go to the and on the Internet. Marathon merchandise is also front and center at Norway-based foundation Active Against Cancer. The race “is our Super Bowl,” said Gary Slayton, vice the company’s new store on 42nd Street, across from Rockport will be introducing a limited edition president of marketing for Asics. Bryant Park. DresSport shoe — only 500 will be available start- To mark the anniversary, New York Road Runners, Asics’ marketing will “take up where we left off last ing on Saturday for $150 a pair — that is a hybrid which stages the race, is working to “broaden the reach” year,” Slayton said. “We looked at some brand-aware- between a dress and running shoe. A portion of the of the marathon and engage spectators and nonpartici- ness studies after last year’s race and found that Asics sales — $20 from each pair — will be donated to pants, including family and friends of the runners, said had the greatest recall of almost any sponsor.” So the ING’s Run for Something Better program through Ann Crandall, senior vice president of business devel- company will “step up” its efforts, flooding subway the Orange Laces campaign. The Bachelor’s Andy opment and marketing for the group. stations in Union Square and Bryant Park Baldwin will be leading a Rockport running In a program called Honor Your Marathoner, NYRR with marketing materials. Asics has also team in the marathon, all of whom will be has established a partnership with Tiffany, Italian Wine installed billboards throughout Time running in the shoes on Sunday. Merchants and ProFlowers on gifts for that special run- Warner Center in Columbus Circle, And DKNY has created a special ner. There are 12 cobranded Tiffany items, everything located blocks from the finish line at T-shirt for a team of 40 runners for from pint glasses and money clips to necklaces and Tavern on the Green. Free Arts NYC, a New York organi- bracelets, as well as wines with a special 40th anni- About two dozen double-decker zation that seeks to bring arts and versary label, Crandall said. ProFlowers has created a tour buses, as well as taxi tops, will mentoring programs to children. marathon boutique for the event. also carry one of the brand’s slo- The runners want to raise $100,000 For the running enthusiast, NYRR is showcasing gans, which this year are: “Hello for the organization. Marathoners of the Decades, four men and four women New York,” “Goodbye Old Me,” Fund-raising is a goal of many who achieved their greatest success at the race, includ- “Goodbye Second Guessing” or races. The event will have 6,800 ing Bill Rodgers, Grete Waitz, Alberto Salazar, Miki “Goodbye Demons.” marathoners representing more Gorman, German Silva, Tegla Loroupe, Paula Radcliffe “It speaks to all the trials and tribu- than 80 charities with a combined and Marilson Gomes dos Santos. lations you go through getting ready for fund-raising goal of $21 million. Actor Asics is being aggressive in its marketing this year, the marathon,” Slayton said. Edward Norton, singer Alanis Morissette with the 40th anniversary “a big milestone,” Slayton Runners who stop by Asics’ booth at the and illusionist David Blaine will run for said. “We’ve been involved since 1988 and watched the expo can also film their own short videos, which the Maasai Wilderness Conservation Trust, a race grow. Even though there are great races around the will air in Times Square on the ABC Supersign The Nike Kenya-based conservation organization. Actor world — Berlin, Tokyo, London — New York is recog- before the race. “It’s your 15 or 30 seconds of LunarGlide Anthony Edwards will run for Shoe4Africa, nized around the world as the granddaddy of them all.” fame in Times Square,” Slayton said. “We had is geared to which wants to build a public children’s hos- Asics will sell cobranded licensed marathon mer- 3,000 people do it last year and we’re hoping to marathoners. pital in Kenya. chandise in a 19,000-square-foot retail shop built for the get 5,000 or 6,000 this year.” The fashion industry also will be repre- event at the three-day Health and Fitness Expo at the Asics has also added an interactive component, sented. Tina Lundgren, wife of Macy’s Inc. Jacob K. Javits Convention Center. Asics will offer pri- allowing participants to receive personalized messages chairman, president and chief executive officer Terry marily licensed New York City Marathon merchandise, at two spots on the course — the Pulaski Bridge, which Lundgren, will race for Ronald McDonald House of but Slayton pointed out that most of the pieces are from is around the halfway mark, as well as in Harlem, closer New York, and Tom Ott, senior vice president of men’s the company’s technical running line. “It adds more to the end of the race. “It’s meant for encouragement,” wear for Saks Fifth Avenue, will run for the American value,” he said. “It’s a souvenir, but it’s also something he said. Cancer Society. MEMO PAD HIGH-LEVEL CUTS: The layoffs at Condé Nast Robin Roberts had moderated a talk between Schwarzenegger, her husband, was elected Schiffer, Freja Beha Erichsen and Baptiste are winding down, although several high- California Gov. Arnold Schwarzenegger, Sir governor of California, spoke about grief Giacobini were in Buenos Aires last week level editors continue to exit. At Details, Richard Branson and FDIC chairman Sheila before moderating a panel between Elizabeth to shoot the new Chanel ad campaign and executive editor Greg Williams and fashion Blair; Eve Ensler performed part of her latest Edwards and Susan Saint James, who have both an editorial for German Vogue. What did director Michael Macko were let go from play, “Emotional Creature”; activist Somaly lost sons, and Lisa Niemi, Patrick Swayze’s Lagerfeld look for in Buenos Aires? “Tango, the magazine Tuesday. Williams had been Mam thanked Glamour editor in chief Cindi widow. Afternoon speakers included Leive, elegance, antiques, and good sunlight,” with Details for two years, while Macko Leive for helping her raise awareness in the Linda Ellerbee, Arianna Huffington, Hon. Hilda L. de Pineda told WWD. “They’re amazed left behind a decade-long tenure at Saks U.S., and Katie Couric chatted with Annie Solis and Caroline Kennedy. — Marcy Medina about the size of Buenos Aires, the beauty, Fifth Avenue to join Details Leibovitz about her financial the cuisine, the great cultural offer and in spring of 2008. At Lucky, situation. “I always let other EVEN TV FEELS THE PINCH: It was a tougher especially the buildings and architecture.” special projects director people handle the finances. than expected third quarter for prime-time The photo shoot was meant to be Allyson Waterman was let Those days are over. It was a television. According to a report from media last Wednesday but because of rain the go, as the magazine has cut good lesson. We are pulling agency TargetCast tcm, the cost of a prime- group had to head to the countryside for back on its events and uses ourselves out [of it],” the time spot dropped 16 percent during the the old and picturesque district of San other staffers for its television photographer said. When period, to $84,000. Fox had the highest Telmo, where they shot some pictures of appearances. asked to dish about some of unit cost, at around $121,000, while Schiffer — with a gaucho hat — in Casa Details cut ad sales her famous portraits, Leibovitz NBC, CBS and ABC were in the $70,000 de los Ezeiza, a traditional Argentine positions last week, while laughed, “I still have a few to $80,000 range. Gary Carr, senior vice house built around 1850 and remodeled Teen Vogue eliminated more years I have to work,” president, executive director of national in 1980. The sun finally shone Thursday several staff positions on but she did reveal she’s about broadcast, said average pricing was affected morning, so Lagerfeld and his team made the sales side on Tuesday. to photograph Justice Sonia by lower ratings and the economy. “No new the short trip to Campo & Polo in the But there were no cuts to Sotomayor for Vogue. During broadcast network programs caught on with Cañuelas countryside to continue the shoot. the editorial staff since that lunch, “Meet The Press” host audiences this summer,” said Carr. The designer and his entourage were in department will meet its David Gregory moderated a talk Ad-supported cable programming Argentina until Sunday. — Moira Malandra budget targets by eliminating between Madeleine Albright, showed ratings growth, thanks to original previously unfilled positions Amy Holmes, Valerie B. Jarrett scripted series, new reality shows and MORE SECRETS: Following on from the best- and trimming other expenses. Katie Couric talks with and Claire Shipman about newsworthy events, such as the Michael selling book “Secrets of Style,” InStyle has Teen Vogue is also working Annie Leibovitz. women choosing between Jackson tributes, and TLC scored big with released “The New Secrets of Style: Your on additional projects, said work and family. Couric, “Jon & Kate Plus 8.” ESPN topped the list, Complete Guide to Dressing Your Best Every to include another television show and who called herself “an annoyingly upbeat” with an average unit cost in prime-time of Day.” “We believe that a closet full of flattering a special prom onsert that will come person, discussed resilience in the face of her $27,000 and TNT garnered $17,000; for clothes you love means facing every day with packaged with the March edition. — husband’s death and her rocky “CBS Evening the top 15 rated cable networks, age 25- the confidence that comes from knowing Stephanie D. Smith and Amy Wicks News” debut (the audience’s applause 54, a prime-time spot rose five percent to you look your best,” said editor Ariel Foxman. prompted her to say, “If only a third of you more than $10,000. — Amy Wicks The book, inspired by Hollywood celebrities, WOMEN’S WORLD: Media and political power watched the ‘CBS Evening News’….Where acts as a style adviser to help women edit players gathered Tuesday at the Women’s are you people when I need you?). Maria KARL IN ARGENTINA: Hosted by Argentine their closets and analyze their wardrobe. It’s Conference in Long Beach, Calif. By noon, Shriver, who founded the conference when model Iván de Pineda, Karl Lagerfeld, Claudia available in bookstores nationwide. — A.W. WWD, WEDNESDAY, OCTOBER 28, 2009 13 WWD.COM Marketing Poll: Holiday Shoppers Balk at Hype Pop Music Items Register at Retail FROM KISS TO THE BEATLES, ROCK- T-shirts are performing very well, often By Valerie Seckler themed T-shirts and other merchandise exceeding our sales expectations each related to pop music are hot properties at week.” Led Zeppelin, Run-DMC and HOLIDAY SHOPPERS ARE IN NO RUSH TO GET THE SEASON UNDER WAY, BUT traditional stores, vintage boutiques and Metallica tops are bestsellers at Target, when the spirit seizes them, about half will spend between $300 and $1,000 on pres- online shops despite the tough economy. and shirts with images of the Beatles, ents, according to a new poll by Zogby International. The players range from the Kiss the Rolling Stones and Elvis Presley With Christmas decorations creeping into the stores and holiday ads and cat- Korners at Wal-Mart stores rolled are staging a comeback. alogues surfacing before Halloween in the past several years, 53 percent of those out nationwide on Oct. 6 to surveyed online from Friday through Monday agreed: “Christmas-holiday shopping Restoration Hardware’s new should start after Thanksgiving and I do not like seeing decorations and hearing holi- limited edition Beatles mer- day music until then — when I’m ready to start shopping.” chandise, including fi ve album Another three in 10 said they thought “stores overdo their efforts” to prompt holiday Ts portraying front covers of gift purchasing and wish they would “tone it down” and “not overwhelm the customers.” “Rubber Soul,” “Sgt. Pepper’s “We may be at a tipping point to back off from the hype, to back off from the pres- Lonely Hearts Club Band,” sure,” said John Zogby, president and chief executive offi cer of Zogby International, “Hey Jude,” “Abbey Road” and which provided the 2009 holiday poll exclusively to WWD. “The pressure to buy, “Let It Be.” (Customers who to keep up, to spend is getting to people. It may not make sense anymore to start ordered the $59, pigment-dyed, Christmas in early October. It’s the smarter marketers who will change.” cotton jersey, Resto Ts at the While feeling overhyped, many would-be holiday shoppers were poised to spend home retailer’s Web site start- several hundred dollars on presents. Roughly one-quarter of the 3,614 adults surveyed ed receiving deliveries Oct. Red vinyl reissues of classic albums like The Rolling foresaw outlays of between $501 and $1,000, while about the same number said they 19. Beatles editions of Trivial Stones’ “Sticky Fingers” will be packaged with Ts by intended to part with $301 to $500. Pursuit and Monopoly will fol- Bravado for exclusive retail deals globally. The Zogby fi ndings are based on a representative sample of adults in the U.S., ages 18 to 70, randomly selected from the pollster’s online panel of 500,000 people. Music marketing and enter- The vast majority of these consumers — eight in 10 — signaled they would shop for tainment firm Bravado intro- holiday gifts, but 45 percent indicated they would spend less than in 2008. About the duced Michael Jackson “This same number of people aimed to spend as much as they did last year. “The trend to Is It” fashion goods this spending less has been growing in the past two years,” Zogby noted. month, such as varsity jack- Americans are clearly of a mind to spend within their means after years of running ets, hoodies, totes, premium up steep credit card bills. More than two-thirds, or 69 percent, said they would pay for sunglasses and baby clothes for the “majority” of their holiday purchases with debit/check cards or cash. As a result, sale at Macy’s, J.C. Penney, Kohl’s Zogby said, the “pressure” on personal fi nances will be “real time, versus pressure in and Target, among others, said January-February to pay off credit card bills.” Tom Bennett, Bravado’s chief ex- The public has been widely credited for upping savings during the recession — if ecutive offi cer. (The “This Is It” at a rate of just 3 percent in August — but most are in no mood to compromise holiday Wal-Mart’s Kiss Korners are offering Mr. Potato Head movie opens worldwide today.) purchasing simply to boost their bank accounts. Fifty-two percent said they would not Kiss collectibles, among other items. Also on tap, in November, are clip seasonal budgets because they wanted to save more, while about one-third said collectibles for about 10 artists, they would save more by taking a bite out of the season’s purchases. low in November.) At Wal-Mart’s Kiss such as Green Day, Guns N’ Roses, A majority of adults, six in 10, would prefer to do all of their holiday shopping on Korners, there are Mr. Potato Head Metallica, Jackson and the Stones. the Internet, rather than at the mall, if they had to choose either one locale or the Kiss collectibles, Kiss T-shirts, make- These goods, marketed by Bravado — other. Amazon.com leads the list of e-commerce sites they’re expecting to shop, fol- up, wigs and the group’s fi rst album in rereleases of classic albums on red lowed by those of eBay, Target, Wal-Mart, Best Buy, L.L. Bean and J.C. Penney. 11 years, “Sonic Boom.” vinyl, paired with complementary “The fact is, 83 percent of U.S. households have Internet access at home,” Zogby Sales of rock-themed items have album Ts — will be sold exclusively at said, pointing out that’s signifi cantly more than the 70-odd percent of homes with been rising at Wal-Mart, spokesman one retailer in each of several coun- land-line phones, down from a peak of 96 percent around 10 years ago. “People with- John Simley said. At Target, spokes- tries, including Hot Topic in the U.S. out Internet access are less likely to be big shoppers.” woman Jana O’Leary said, “Music — V.S.

motivated to retain their looks and stylishness to still be attractive to other potential mates, really low body mass index and look like Kate because for them, it’s not as much a matter so if a married woman sees a great new dress Moss. But in fact, that’s a mass delusion. If of attracting a high-quality mate, but keeping she’d look attractive in, it’s also important she you ask men what kind of body shape they are him interested and detaining other women not acknowledge that she wants to attract sexual most attracted to, they typically give answers from poaching their husbands away. So a lot of attention from men other than her husband. that represent a healthy, peak fertility normal females see conspicuous consumption not as a She needs to be able to convince herself, and woman. Conversely, men have the impression way to attract more men, but to intimidate other her husband, that she’s just buying it for self- women are much more attracted to muscle women who are their sexual rivals. esteem. The most effective advertising plays a mass, so men go around chasing diabolic subtle cat-and-mouse game with those instincts. steroids, working out and trying to bulk up, WWD: Why is consumer purchasing so thinking that will be more attractive to women. infl uenced by celebrities? WWD: What were some major moments And men select clothing that emphasizes upper G.M.: Humans, like all social primates, have an in consumerism? body muscles, when, in fact, research shows instinctive attention to individuals of high status, G.M.: The Volkswagen Beetle ads in the Sixties women don’t care much about musculature. automatically lock on to prestige, pay attention to were a real turning point in the sophistication of They just want a guy that’s in decent shape, Q it, and try and imitate it. You see chimpanzees, advertising. They were the fi rst ads to use self- healthy, energetic, but intelligent and kind. where lower-status individuals spend a lot of deprecation and irony, and show an GEOFFREY time looking at higher-status individuals, tracking upfront savvyness about the nature of WWD: Why do people sometimes each other’s every move. And the higher-status advertising itself, and were the fi rst have misconceptions about what individuals just do their own thing, not paying ads to appeal to the counterculture. they look like? MILLER attention to the lower status. The same is true of Another turning point was Calvin G.M.: That results from the confl ict of GeoffreyA Miller believes sex is a primary basis humans: Whatever gets defi ned as higher social Klein jeans in the late Seventies, interest between what advertisers feel for how consumers decide what to buy. status leads to attention holding power, grabs early Eighties, which represented is a cool campaign to work on, versus Miller, the author of “Spent: Sex, Evolution our focus and we can’t help but pay attention to the understanding that even a what may actually be profi table for and Consumer Behavior” (Viking), is a professor what prestigious individuals do. counterculture icon, like blue jeans, the companies and useful to the of evolutionary psychology at the University of could be given premium branding, consumer. A typical ad executive New Mexico and a consultant to companies WWD: How have buying habits changed? and take advantage of the new wants to work on campaigns such as Procter & Gamble Co. and The Coca- G.M.: A lot of consumers now want brands mass affl uence among middle class aimed at young, cool, rich, skinny Cola Co. He argues consumers buy and wear to give them a lot more bang for their buck. consumers and deliver aspirational single people. In fact, a lot of what they do because of their desire to attract They don’t know where capitalism goes goods that took advantage of premium brand clothing could potential mates, rather than fashion trends. next, and people who lost a lot of equity the high-fashion associations of make a profi t by paying attention Miller’s new book. Shoppers buy clothes they think make them and worth have become more frugal in their the Calvin Klein brand, but were to overweight consumers, who look good, but in reality other people rarely spending. The recession led to a questioning affordable to the Iowa mall shopper. are a huge proportion of Americans in general, notice what they wear. “Sometimes, they do, of runaway consumerism, especially in the including affl uent Americans. but often they don’t, and we overestimate how fashion industry….Educated consumers now WWD: What were some memorable much they do,” he said. “Can you remember pay more attention to the antiglobalization, consumerism mistakes? WWD: Is the state of consumerism changing? anything specifi c worn by your spouse or best environmental and green movements, ethical G.M.: I think the sport utility vehicle trend was G.M.: There is a mass of change from the friend the day before yesterday?” investment and voluntary simplicity. a real peculiarity that will be remembered social networking Web sites, where for free — Dick Silverman as a kind of mass vanity in a few decades… you can broadcast your musical tastes, fashion WWD: How long will the new buying habits last? and I think was an example of real runaway tastes and political values, without having to WWD: Why does sex sell? G.M.: As long as the recession, and then we’ll conspicuous consumption that in retrospect buy a product associated with those traits. For Geoffrey Miller: All animals devote time and go back and pent-up demand will be needed looks pretty silly. example, you can say you like the designs of energy to attracting sexual partners — especially to be released, like an earthquake. classic Issey Miyake, or exotic cutting-edge high-quality sexual partners — and that’s WWD: Is it common for people to be fooled designers or dressmakers just by seeing their diffi cult whether you’re a peacock, humpback WWD: What errors do people make in purchases? when they make purchases? advertising and coverage in fashion magazines, whale or human. Young single men are one of G.M.: Most people are completely muddled about G.M.: Each sex misunderstands what the other without actually buying anything. What you’re the most profi table segments [in the industry] their goals when they buy something. One reason sex wants. Research in psychology shows doing is revealing a lot about your aesthetic because they pour time, energy and money into they’re confused is they are not honest with women think men are attracted to skinnier tastes, cultural sophistication, your openness mating efforts to attract women, consciously or themselves about their social or sexual agenda. women, but they actually aren’t. Most women to new design — but the designer is not unconsciously. Married but aging women are For example, it’s important for married people feel that to be attractive, they have to have actually making any money from you. 14 WWD, WEDNESDAY, OCTOBER 28, 2009 WWD.COM Financial For full daily stock changes and more financial news, see WWD.com / business-news. Guidance Takes Toll on Iconix as Ecko Deal Confirmed Kao Sees Profits Drop By Matthew Lynch closes in the current quarter. Co-founder Marc Ecko, who will continue in his role as chief creative officer, will receive Shares of Iconix Brand Group Inc. retreatED an estimated $3 million of those royalties annually. 22.1 Percent in Half Tuesday despite a healthy third-quarter showing as investors In a memo sent to employees Tuesday, Ecko, co-found- TOKYO — Net profits at Kao Corp. plummeted 22.1 digested a weak outlook and confirmation of a partnership er and ceo Seth Gerszberg and Zoo York president Marci percent in the six months ended Sept. 30 to 25.24 with Marc Ecko Enterprises Inc. and its stable of brands. Tapper wrote that the firm struck the deal to pay down billion yen, or $264.5 million. For the quarter ended Sept. 30, Iconix reported profits of debt and reposition for growth. The executives wrote that Weak sales of the Japanese firm’s prestige cos- $20.5 million, or 28 cents a diluted share, 24.6 percent better Marc Ecko Enterprises will operate as a global licensee of metics, coupled with a decrease in consumer than a year ago, when net income totaled $16.4 million, or the brands and pay royalties to the joint venture. demand in the chemicals industry, led to an 8.9 27 cents a share. Revenues in the quarter increased 7.6 per- “All major decisions such as marketing, distribution and percent drop in the company’s net sales to 599.05 cent to $59.4 million from $55.1 million in the comparable product extensions require unanimous consent,” they wrote. billion yen, or $6.28 billion. 2008 period. Revenues included a $3.7 million benefit from The company “will continue to own and operate 100 Kao also blamed a temporary cancellation of its the sale of its Joe Boxer trademark in Canada. percent of our domestic and international wholesale, re- Econa cooking oil line and related products for the Adjusted EPS of 31 cents was 3 cents better than the con- tail and e-commerce businesses,” the note continued. poor results. Dollar figures are converted at average sensus estimate of 28 cents, according to Yahoo Finance. Iconix stock fell 99 cents, or 7.4 percent, Tuesday to close exchange rates. Separately on Tuesday, Iconix said it had entered an agree- at $12.38, as some in the investment community questioned Kao’s operating profits dropped 16.7 percent to ment to take a majority stake in the Ecko Unlimited, Marc the merits of the Ecko deal while others worried over what 45.58 billion yen, or $477.7 million, in the period. Ecko and Zoo York trademarks and other intellectual property they saw as soft guidance in the coming year. owned by Marc Ecko Enterprises through a new joint venture. “While the purchase is accretive and should help the over- Neil Cole, chairman and chief executive officer of all company in terms of providing solid European exposure, Iconix, said on a conference call with analysts that some we are not fans of the ownership structure and, frankly, ques- BEAUTY BEAT components of the Marc Ecko portfolio “could lend them- tion the need for another streetwear brand, given the com- Sales from the firm’s consumer products divi- selves easily to our direct-to-retail model.” pany’s ownership of Rocawear and Ed Hardy,” wrote Brean sion, which includes personal care and cleaning Iconix said it will acquire the Ecko trademarks through Murray, Carret & Co. analyst Eric Beder in a research note. products, dipped 4.1 percent. Decreased revenues a joint venture, of which it will have a 51 percent stake, However, at Lazard Capital Markets, analyst Todd from prestige beauty products contributed to a with MEE holding the remainder. The company will pay Slater seemed pleased to see the brand owner seeking out 8.1 percent decline in the results for Kao’s beauty $63.5 million in cash to fund the deal. The new venture deals. He wrote, “With [Iconix] back in acquisition mode, care division. will obtain an additional $90 million in financing, making and what appears to be conservative EPS guidance, we For the fiscal year ending March 31, the company Iconix’s effective purchase price $108.5 million. see a built-in cushion in its earnings outlook.” expects net profits will slide 36.4 percent to 41 billion Cole said he expects the brands to generate gross royalty The firm said it expects to earn between $1.25 and $1.30 a yen, or $429.7 million. Kao also forecasts a 7.2 percent revenues of $45 million to $47 million a year after the deal share in 2010, below the $1.34 analysts’ consensus estimate. sales decline to 1.19 trillion yen, or $12.47 billion. — Kelly Wetherille Inter Parfums Sales $104M in Qtr. Lingering Job Worries Weigh on Consumer Confidence Strong Burberry fragrance sales, good performances in key markets, particularly Western Europe and the By Vicki M. Young and labor market conditions will worsen in the months U.S., and a favorable currency effect helped Inter ahead,” Franco said. Parfums SA maintain third-quarter 2009 sales on par Growing fears about job security dragged In the Conference Board’s October survey, consumers with the same period last year at 72.8 million euros, down consumer confidence in October, compounding con- who claimed business conditions are “bad” rose to 47.1 or $104 million at average exchange. cerns about limited spending during the holiday season. percent from 46.3 percent. Their appraisal of the labor The Paris-based subsidiary of Inter Parfums Inc. Following a drop last month, The Conference Board’s market also fell, with respondents who said jobs are “hard said it was up against a high basis of comparison since Consumer Confidence Index fell unexpectedly in October, to get” increasing to 49.6 percent from 47 percent. In addi- the year-ago period was bolstered by the launches of the to 47.7 from 53.4 in September. The latest reading is the tion, those who expect business conditions to worsen also Van Cleef & Arpels’ Féerie fragrance, Lanvin’s Jeanne lowest since July. Analysts and economists were expecting rose to 18.3 percent from 14.6 percent. Lanvin and S.T. Dupont’s Passenger. a slight dip to 53.1. On the jobs front, those who expected fewer jobs rose Sales in the first nine months of the year were The Present Situation Index fell to 20.7 from 23 last month to 26.6 percent from 22.9 percent. down 3.5 percent year-over-year at 194 million euros, and the Expectations Index decreased to 65.7 from 73.7. Jack Hendler, president of Net Worth Solutions Inc., or $265.2 million. The confidence shortage spread to investors Tuesday as said, “Vendors knew it would be a tough holiday season At constant exchange, sales slumped 8.9 percent. well. The S&P Retail Index slid 6.27 points, or 1.6 percent, this year and have been working with their suppliers in the Its Burberry fragrance business saw sales decrease to close at 390.19. The measure of retail stock performance Pacific Rim for opportunities. We’ll see more promotions in 1.7 percent in the period to 125.7 million euros, or topped 400 for the first time in more than a year on Monday. November. No one is waiting for Black Friday for the door $171.8 million. Lynn Franco, director of The Conference Board Consumer breakers. Stores have been preparing themselves with buy- “Based on positive trends for orders in recent Research Center, said, “Consumers’ assessment of present-day ing a fair amount of promotional product.” weeks, the company still anticipates a marginal conditions has grown less favorable, with labor market condi- Jeffrey Edelman, director of retail and consumer prod- decline in 2009 full-year sales in relation to the tions playing a major role in this grimmer assessment.” ucts advisory services at the accounting firm RSM McGladrey prior year,” the company stated. As reported, She noted the Present Situation component is at its Inc. and a former retail analyst, said, “No one is looking for earlier this month Inter Parfums inked a 12-year lowest reading in 26 years. much out of holiday....Retail sales are closer to plan and in- worldwide fragrance licensing agreement with “The short-term outlook has also grown more negative, ventories have finally been brought down so the stores can Jimmy Choo. as a greater proportion of consumers anticipate business rebalance their inventories with the proper brands.” — Brid Costello

10 Best Performers 10 Worst Performers

DAILY COMPANIES P/E Volume Amt DAILY COMPANIES P/E Volume Amt High Low Last %Change High Low Last %Change

0.65 0.56 Charles & Colvard (CTHR) - 51557 0.65 +14.04 28.23 19.17 Carter (CRI) 18.7 14189084 21.66 -23.84

4.61 3.90 Tandy Brands (TBAC) - 57902 3.90 +9.09 31.89 28.80 Under Armour (UA) 41.9 1931981 29.27 -11.54

28.86 26.68 Lululemon (LULU) 53.6 3304552 27.90 +8.52 3.06 2.54 Casual Male (CMRG) - 589873 2.60 -10.96

3.97 3.80 LJ Intl. (JADE) 33.6 1304304 3.94 +6.49 15.00 12.59 LaCrosse Footwear (BOOT) 19.1 35690 12.98 -10.54

22.84 20.86 G&K (GKSR) - 122384 22.07 +5.85 12.75 11.37 Movado (MOV) - 344244 11.42 -8.93

9.65 9.28 Delta Apparel (DLA) 12.0 8545 9.55 +4.95 6.87 6.20 Coldwater Creek (CWTR) - 2803267 6.26 -8.35

5.39 5.22 Caché (CACH) - 34168 5.39 +3.26 18.54 17.55 Limited Brands (LTD) 65.0 12787201 17.91 -8.11

414.60 400.10 Hennes & Mauritz * (HMB:ST) 22.3 3584107 412.20 +2.64 2.80 2.55 American Apparel (APP) - 515295 2.58 -7.86

17.34 16.73 Orchids Paper (TIS) 10.9 24043 17.11 +2.27 10.15 9.14 Stein Mart (SMRT) - 873960 9.17 -7.84

6.49 6.16 Christopher & Banks (CBK) - 298539 6.34 +1.93 7.04 6.41 Zale (ZLC) - 825009 6.41 -7.77

* Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. WWD, WEDNESDAY, OCTOBER 28, 2009 15 WWD.COM The World of Devi Kroell Comes to Madison Ave. Ferragamo Doubles Up in Houston

By Sophia Chabbott Inside Devi Kroell’s Madison flagship. SALVAToRE FERRAgAMo IS TAKINg A bIggER SLICE oF TExAS. The brand officially reopened its Houston boutique at The galleria NEW YORK — Devi Kroell’s store on Tuesday, almost doubling its space to 4,000 square feet. is an amalgam of what the de- “Houston is a significant market for Ferragamo, so it was important signer stands for: daring design we expanded the store in size and increased the product offering to steeped in classic techniques. include runway collection, timepieces, and a wider variation of shoes, Kroell’s flagship opened handbags, ready-to-wear, silks and eyewear,” said Vincent ottomanelli, Tuesday at 717 Madison Avenue president of Ferragamo USA. “The new renovation embodies an in- in a landmark building dating creased use of limestone and walnut paneling, creating a warmer and from the late 1800s. The bou- more luxurious feeling throughout the store.” tique offers a view into Kroell’s ottomanelli described world, offering consumers all The galleria boutique as of the designer’s categories one of the Italian firm’s

— including ready-to-wear, chinsee most productive stores handbags, shoes and fashion in a retail network that jewelry — merchandised to- includes 550 points of george

gether for the first time in the by sale globally. The store 3,000-square-foot space. is projected to generate “The customer doesn’t know annual sales of $7 mil- photos the whole breadth and width of lion to $8 million. my designs,” Kroell said. “It’s For more images, see WWD.com. “The Houston client going to be a big surprise for a lot of my customers.” The firm projects that the Madison Avenue is interested in fashion- Designed by New York design firm Space4 flagship will generate $6 million in retail sales able investment pieces Architecture, the old-world facade is juxtaposed in the first 12 months, and eventually reach vol- and understands and with an ultramodern double-height ceiling. ume of $9 million to $10 million annually. appreciates the quali- “I wanted to come up with a design that will Kroell’s signature exotic skin handbags, ties that define the transcend time, that we can hold onto for a de- shoes and leather accessories are dotted around Ferragamo house: qual- cade or two decades,” Kroell said. the store. There is rtw on the first floor, but the ity, style, craftsman- Ferragamo’s updated boutique. The space has an edgy, minimalist feel. The second floor houses a more comprehensive as- ship and innovation,” mezzanine has gallery white walls and sculptural sortment of clothing. ottomanelli said. built-in chaises combined with warmer touches The shop also has exclusives, such as scarves, To celebrate the opening, the boutique featured a temporary in- such as aged Russian oak wood floors, statuary jewelry and other gift items. Kroell plans to stallation Tuesday night of the company’s most iconic styles from its bronze and a glossy Venetian plaster ceiling. offer a luggage set made of alligator in time for 13,000-style archive at an event to benefit the University of Texas’ M.D. “It’s a very tactile feeling,” Kroell said. “I the holiday season. Anderson Cancer Center. love mixing different materials.” Rtw retails from $390 to $2,690, jewelry from Ferragamo’s Creations, a line of limited edition shoes and handbags Kroell also has a store in East Hampton, $490 to $1,490 and small leather goods sell from inspired by the archival accessories, will be available for purchase N.Y., and plans to open a shop in Las Vegas next $90 to $390. The store also carries the new leath- until Sunday. The collection, launched in 2006, is typically in only a month, followed by units in Houston, Chicago, er bag collection. small number of Ferragamo stores, including units in Florence, Capri, Florida, California and a second New York ad- In mid-November, the opening of the store Paris, New York and ginza. dress within the next two years. will be celebrated with a party. — S.C.

WWD.COM/CLASSIFIEDS

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VP of SALES Outstanding Accessories Professional Major outerwear company seeks Vice looking for a company that wants to President of sales for a new Branded sell to majors.Company must be License. Send resume to: secure financially. To subscribe, visit our website [email protected] Please call Peter@ 215-292 -7493 www.wwd.com/subscribenow Broadway Garment Center or call 800.289.0273 NICE OFFICE + SHOWROOM AVAILABLE TO SHARE For group rates, contact Richard Franz at [email protected] Please Call Joan @ 917-907-1667 Heads up: Time to tell your best customers about your next event.

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