CHRISTMAS RUSH DELIVERY PRE-FALL WISH 2015 DESIGNERS AND LOOKS FROM CELEBRITIES REVEAL WHAT WON HUNDRED, THEY HOPE TO FIND UNDER NOON BY NOOR THEIR TREES ON THURSDAY. AND PINK RETAILERS STEP UP THEIR DRIVE TO DELIVER TARTAN. PAGE 6 PAGES 10 AND 11 SHOPPERS’ LAST-MINUTE HOLIDAY ORDERS. PAGE 9
WWDTUESDAY, DECEMBER 23, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY HOLIDAY’S FINAL COUNTDOWN Saturday Seemed Super, But Season Might Not Be There also was a strong feeling By DAVID MOIN that consumers still are holding and SHARON EDELSON back their purchasing, playing the same waiting game with retailers SUPER SATURDAY proved to be that they’ve done in recent years. the biggest shopping day of the year “Over the past few years, we’ve no- yet did little to change the modest ticed a trend in customers waiting outlook for the holiday season. until the last minute to fi nish their While last weekend marked the shopping,” said Scott McCall, senior second decent one in a row after vice president of merchandising for early December’s deep lull, the Wal-Mart U.S. “While many custom- forecast for holiday 2014 stands at ers start their Christmas shopping low-single-digit gains for retailing in November, the majority don’t put generally, with the apparel sector their lists away until Dec. 24.” falling far short of that. “There was only about a 2 per- “There are no trends to make cent increase on Super Saturday people feel they have to buy ap- weekend, with $42 billion in sales parel,” said Claudio Del Vecchio, versus last year’s $41 billion,” chairman and chief executive of- said Craig Johnson, president fi cer of Brooks Brothers. “There is of Customer Growth Partners. still a lot of inventory out there. I Saturday’s business alone gener- don’t think spring is going to be bet- ated $23 billion, topping Black ter. It will be more of the same for Friday’s $20 billion in sales, ac- the next few seasons.” cording to CGP. SEE PAGE 8 American Apparel’s Chairman Talks Future Without Charney with turnarounds, told WWD the By EVAN CLARK company is well positioned to get back on track under the guidance COLLEEN BROWN is stepping of incoming chief executive offi cer into the firestorm at American Paula Schneider. Apparel Inc. “There is a solid team there,” As the company’s new chairman, Brown said. “It’s just a matter of she fi nds herself armed with a new strengthening.” poison pill; fi elding interest from She said the fi rm has to refocus Irving Place Capital; contemplating on churning out great fashions and a major turnaround, and fending off getting the most out of operations. the fi rm’s ousted founder and larg- “We really do believe that est shareholder, Dov Charney. American Apparel is a place that can All in a (fi rst) day’s work atop the be extremely productive and a pro- Unfinished whirlwind that is American Apparel. fessional workplace,” Brown said. Brown, who has experience SEE PAGE 12 Business Raw edges and visible tears can be beautiful, as Yang Li illustrates with this chic sleeveless suit. Working a silk and mohair vest with patches of translucent silk draped imprecisely through the back and side, he adds fl uidity to a tailored silhouette. For more, see pages 4 and 5.
PHOTO BY ELI SCHMIDT; STYLED BY MAYTE ALLENDE MODEL: KRISTINA/IMG; HAIR: KATSUMI MATSUO FOR BUMBLE AND BUMBLE/ARTMIX; MAKEUP: JAVIER ROMERO USING MAKE UP FOR EVER; MANICURIST: JACKIE SAULSBERY/ARTLIST; FASHION ASSISTANT: MILTON DIXON; PHOTO ASSISTANT: JEREMIAH HULL DIXON; PHOTO ASSISTANT: MILTON ASSISTANT: FASHION JACKIE SAULSBERY/ARTLIST; ROMERO USING MAKE UP FOR EVER; MANICURIST: MAKEUP: JAVIER FOR BUMBLE AND BUMBLE/ARTMIX; MATSUO MODEL: KRISTINA/IMG; HAIR: KATSUMI
2 WWD TUEDAY, DECEMBER 23, 2014 WWD.COM
Xcel Buys Halston Diffusion Lines THE BRIEFING BOX lines, Xcel and House of Halston That infrastructure took a By VICKI M. YOUNG will work together to ensure few years to build, and the com- IN TODAY’S WWD alignment of brand aesthetics for pany learned much from its ini- XCEL BRANDS’’ INC. now can each label and the consumer dis- tial steps in planning out the li- be counted as a part of Team tribution channels each targets. censing program for the Mizrahi Halston, figuratively speaking. Hilco acquired the Halston brand. It also took its learnings How are Xcel has acquired the H brand in 2007 for $25 million. from the fi rst Mizrahi store in Londoners Halston and H by Halston brands Malka, Halston’s ceo, reportedly Southampton, N.Y., in terms of facing the cold? for $27.7 million in a combi- invested $20 million in Halston inventory and the mix of stock- See WWD.com. nation of cash, shares of Xcel when he joined the company as keeping units, in evaluating re- Brands stock and warrants. The chairman and ceo. Malka also is tail store opportunities when assets were held in a Halston on Xcel’s board. considering that component of a intellectual property holding “I’m looking forward to work- brand’s acquisition potential. company that in turn is owned ing with Bob and his team on this “We had a goal three years ago, by a group of investors that in- exciting new project,” Malka said. when we did $50 million in sales, clude Hilco Consumer Capital The deal represents the second to grow that to $500 million by the and Ben Malka, who operate the acquisition for Xcel this year — it end of three years. Now we want business under the name House bought the Judith Ripka brand in to take that to $1 billion, which we of Halston, LLC. Halston will April for $20 million — and the can do organically or through an acquisition,” D’Loren said. He didn’t have a timetable for when Xcel could reach $1 billion PHOTO BY FRANCISCO GOMEZ DE VILLABOA FRANCISCO PHOTO BY We had a goal three years ago, when we in aggregate sales volume for its brands, but added: “We are grow- did $50 million in sales, to grow that to ing very fast. One or two acquisi- tions can get us there.” Super Saturday proved to be the biggest shopping day of the $500 million by the end of three years. D’Loren declined to disclose year yet did little to change the modest outlook for the holiday potential plans for the Halston season. PAGE 1 Now we want to take that to $1 billion. subbrands. However, category ex- tensions via licensing and selling American Apparel’s new chairman Colleen Brown fi nds herself — ROBERT D’LOREN, XCEL BRANDS INC. product offerings across differ- armed with a new poison pill and fi elding interest from Irving ent channels are strategies he’s Place Capital as well as contemplating a major turnaround and put in place for the Mizrahi and fending off the fi rm’s founder Dov Charney. PAGE 1 retain ownership of its Halston third one since September 2011, Ripka business models. and Halston Heritage brands. when it made its fi rst acquisition, The Ripka brand, now fully Xcel Brands has acquired the H Halston and H by Halston Halston Heritage is the core con- which was the Isaac Mizrahi brand integrated at Xcel, will be back brands for $27.7 million in a combination of cash, shares of temporary line. for $31.5 million. at Neiman Marcus in spring Xcel Brands stock and warrants. PAGE 2 Robert D’Loren, chairman and D’Loren is on the lookout for 2015, according to D’Loren, and more brands to add to Xcel’s Mizrahi will soon have a store chief executive offi cer of Xcel, The harbor employers embroiled in a crucial labor contract said, “Halston was an American portfolio. “Acquisitions are a lit- presence, under a licensing ar- covering the West Coast ports are taking the drastic step of icon, and these brands, inspired tle easier for us now that we have rangement, in the Philippines. by his legacy, are an excellent the platform. I don’t think we Separately, both brands will asking for federal mediation. PAGE 2 acquisition for our growing om- will move as fast as some of our be available on QVC in the U.K., nichannel company.” competitors. We are much more Germany and France in 2015, Bulgari opened a 1,800-square-foot store at India’s DLF While D’Loren has hired his design driven, and it’s more chal- Ripka on QVC in Japan in 2015 Emporio mall. The Indian government gave Bulgari the own design and marketing teams lenging for us to integrate design and Mizrahi on QVC in China and approval in June under the recent policy allowing foreign direct to work on the Halston diffusion teams,” he said. ’’ Japan in 2016. investment in single-brand retail. PAGE 6 Executives are seeking to integrate practices that improve their employees’ working conditions and the environment with accountability and transparency by becoming benefi t PMA Asks for Mediation in Ports Dispute corporations. PAGE 7 come their differences rather PMA also worried that the diver- By KHANH T.L. TRAN than call a mediator. Although the sions shippers have made to East Retailers racked up strong e-commerce sales last week as peak holiday shipping season is Coast ports from the West Coast holiday shipping cutoffs approached, gearing up for the mad LOS ANGELES — After seven over, ports along the West Coast will be permanent. According to a dash on Monday to deliver the last packages before Christmas months of negotiations, the har- remain at below-normal produc- recent industry survey conducted Day. PAGE 9 bor employers embroiled in a tivity. At the Port of Long Beach, by the Journal of Commerce, 60 crucial labor contract covering the second busiest in the nation, percent of shippers already have Italian TV show “Report” zeroed in on Gucci on Sunday the West Coast ports are taking delays that stretched two weeks to rerouted cargos for 2015 away evening during its latest attack on the luxury industry. PAGE 12 the drastic step of asking for fed- a month at their worst in October from the U.S. West Coast to avoid eral mediation. and November have shortened problems, it said. On Monday, the Pacific to one to two weeks. The Port of “After seven months of nego- Giorgio Armani continues to support young designers by hosting Maritime Association said it Tacoma has been logging a pro- tiations, we remain far apart on Edmund Ooi’s show at his Armani Theater on Jan. 17, the fi rst day asked federal mediators to work ductivity rate of 60 to 70 percent. many issues,” said PMA spokes- of the upcoming Milan Men’s Fashion Week. PAGE 12 with it and the International The PMA said it had hoped the man Wade Gates. “At the same Longshore and Warehouse Union two sides could reach a resolu- time, the union continues its as they try to fi nalize a new con- tion covering 29 ports and 20,000 slowdowns, walk-offs and other ON WWD.COM tract to replace the six-year dockworkers without outside aid. actions that are having impacts agreement that expired July 1. After the latest back-and-forth on shippers, truck drivers and TAW London: As winter arrived, Londoners braved the cold While trade groups such as the failed to resolve their differences, other local workers with no end wearing a mix of classic wools and tweeds and statement National Retail Federation plead- it said it has now agreed that out- in sight. It is clear that the parties coats. For more, see WWD.com. ed with President Obama to inter- side intervention is necessary to need outside assistance to bridge vene as early as Nov. 6, the union bring the talks to conclusion, par- the substantial gap between us.” has repeatedly said that both the ticularly given the ongoing impact The union didn’t respond to a PMA and ILWU needed to over- of alleged work slowdowns. The request for comment by press time. FOLLOW US ON SOCIAL MEDIA @ WWD.com/social
TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. Roberto Ramos Joins the Doneger Group WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 208, NO. 128 TUESDAY, DECEMBER 23, 2014. WWD (ISSN 0149-5380) is published daily (except Saturdays, Ramos, who is fluent in Collective in 2001, a New York- Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and By JEAN E. PALMIERI Spanish, Italian, French and based creative/digital agency, two additional issues in February and September) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Fl, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA, Portuguese, will report to Abbey where he worked with retailers and at additional mailing offi ces. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, THE DONEGER GROUP has Doneger, president of The and Fortune 500 companies both Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, beefed up its creative team with Doneger Group. in the U.S. and overseas. In 2012, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at wwdPrint@cdsfulfi llment.com. Please the appointment of Roberto “Roberto is a strong strate- Ramos and his partner sold their include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes Ramos to the position of senior gic and creative thinker, and he company to global digital agen- or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. vice president of global strategy brings a global perspective to our cy Profero, where he served as If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfi ed and communications. company,” Doneger said. “I be- managing director, working with with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a In this new position, Ramos lieve that he has the ability to de- leading global brands such as subscription term and/or the way the product is delivered. Address all editorial, business, and production correspondence to will help the company develop liver outstanding merchandising TRESemmé, Primark, Havaianas, WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. global strategic plans, implement and business strategies for our Avon, Rémy Martin and PepsiCo. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. new digital and merchandising clients, leveraging his global and Ramos said he was looking To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, strategies and oversee market- digital experience. I am confi dent forward to helping “harness the UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, ing communications. He also will that Roberto will be a valuable transformative forces of global- AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY oversee Doneger’s editorial and addition to our organization.” ization and digital to support the REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS content teams. Ramos cofounded Vox growth of our clients’ business.” SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. I N M E M O R Y O F M I K E T O T H 4 WWD TUESDAY, DECEMBER 23, 2014
Prada’s cotton-wool gabardine coat, socks and shoes; Derek Lam polyurethane, cotton and nylon top; Fallon necklace; Dima bracelet; Realm, Giles & Brother, Dima and Lulu Frost rings.
Unfinished Business The road map to a PHOTOS BY ELI SCHMIDT; STYLED BY MAYTE ALLENDE garment’s construction is usually invisible, yet some of spring’s freshest tailored looks featured eye- catching stitching that intentionally revealed the clothing’s craftsmanship. MODEL: KRISTINA/IMG; HAIR: KATSUMI MATSUO FOR BUMBLE AND BUMBLE/ARTMIX; MAKEUP: JAVIER ROMERO USING MAKE UP FOR EVER; MANICURIST: JACKIE SAULSBERY/ARTLIST; FASHION ASSISTANT: MILTON DIXON; PHOTO ASSISTANT: JEREMIAH HULL DIXON; PHOTO ASSISTANT: MILTON ASSISTANT: FASHION JACKIE SAULSBERY/ARTLIST; ROMERO USING MAKE UP FOR EVER; MANICURIST: MAKEUP: JAVIER FOR BUMBLE AND BUMBLE/ARTMIX; MATSUO MODEL: KRISTINA/IMG; HAIR: KATSUMI WWD TUESDAY, DECEMBER 23, 2014 5 WWD.COM
Boss’ viscose coat; Versace’s silk cady jacket with Elizabeth and James dress; leather stitching, silk cady Nirco Castillo dress. shorts and silk Lycra top.
PHOTOS BY ELI SCHMIDT STYLED BY MAYTE ALLENDE MODEL: KRISTINA/IMG; HAIR: KATSUMI MATSUO FOR BUMBLE AND BUMBLE/ARTMIX; MAKEUP: JAVIER ROMERO USING MAKE UP FOR EVER; MANICURIST: JACKIE SAULSBERY/ARTLIST; FASHION ASSISTANT: MILTON DIXON; PHOTO ASSISTANT: JEREMIAH HULL
Yohji Yamamoto’s paper, polyamide and viscose tank top and Tencel jacket; Isabel Marant’s linen and paper skirt; Calvin Klein boots. MODEL: KRISTINA/IMG; HAIR: KATSUMI MATSUO FOR BUMBLE AND BUMBLE/ARTMIX; MAKEUP: JAVIER ROMERO USING MAKE UP FOR EVER; MANICURIST: JACKIE SAULSBERY/ARTLIST; FASHION ASSISTANT: MILTON DIXON; PHOTO ASSISTANT: JEREMIAH HULL DIXON; PHOTO ASSISTANT: MILTON ASSISTANT: FASHION JACKIE SAULSBERY/ARTLIST; ROMERO USING MAKE UP FOR EVER; MANICURIST: MAKEUP: JAVIER FOR BUMBLE AND BUMBLE/ARTMIX; MATSUO MODEL: KRISTINA/IMG; HAIR: KATSUMI 6 WWD TUESDAY, DECEMBER 23, 2014 Noon by Noor Pink Tartan Won Hundred Pre-Fall 2015 Noon by Noor: Designers Shaikha Noor Al Khalifa and Shaikha Haya Al Khalifa took a minimalistic approach to pre- fall silhouettes, imbuing their clean, streamlined shapes — T-shirts, a shift dress, a collarless jacket — with fl ower embellishments, graphic prints and innovative fabrics, such as a shimmering silk that gave the appearance of sequined stripes. Stripes added a sporty effect to other looks, the best of which was a black and white alpaca coat styled over fl oral- print separates for an unexpected twist. Elsewhere, a sheer organza blazer offered a new play on suiting. “We wanted a subtle vibe,” Al Khalifa said. “We focused on shape and simplicity.” — KRISTI GARCED
Pink Tartan: Pre-fall at Pink Tartan had a distinct Seventies vibe, seen in designer Kimberley Newport-Mimran’s wide-leg pants, boho blouses, jumpsuits and wrap dresses in a bold orange, navy and white paisley print. Knitwear was embellished with subtle fringe, as was a chic sueded shawl, while a series of looks in a green leopard-cum-camoufl age print added a youthful touch to the lineup. — K.G.
Won Hundred: Creative director Nikolaj Nielsen and designer Anna Bauer drew pre-fall inspiration from the late- Seventies’ and early-Eighties’ punk and rock movements. That reference was easiest to see in the whimsical safety pin- FOR MORE printed dress, layered underneath a black PRE-FALL 2015, SEE leather motorcycle jacket. The lineup also offered plenty of tailored separates, WWD.com/ including a boyish, wide-leg red suit and runway. a very cool pair of culottes — which are emerging as a trendy pant silhouette this
PINK TARTAN PHOTO BY THOMAS IANNACCONE; NOON BY NOOR BY JOHN AQUINO NOOR BY THOMAS IANNACCONE; NOON BY PHOTO BY PINK TARTAN season — done in black leather. — K.G.
Bulgari Opens Flagship in India The Bulgari store at the DLF Emporio mall. bearing in mind that in the past sumers; this is creating a host By MAYU SAINI we were present through a fran- of opportunities for the existing chisee partner. This new busi- and new players.” NEW DELHI — When Bulgari ness joint venture allows for a Bulgari appears to be count- opened its fi rst fl agship in India complete Bulgari brand experi- ing on this changing customer, last month, it signaled a revival ence with the opening of a bou- hoping the Indian consumer of interest in the country’s lux- tique showcasing the four di- will reach beyond the tradi- ury market. mensions of Bulgari — jewelry, tional and local jeweler and buy That market, which grew luxury watches, premium acces- more global styles. at 30 percent in 2013 to $8.5 sories and high-end perfumes.” “Today, a growing number billion, is likely to continue Bulgari jewelry was avail- of people can afford luxury at expanding at a healthy pace able in India from 2004 to 2011, various price levels in India. No to reach $14 billion by 2016, but the luxury fi rm gave up on doubt, many still purchase their according to the Associated India, apparently disappointed jewels from their local neigh- Chambers of Commerce and with the results. borhood or family jeweler; how- Industry of India. “The retail environment just ever, more are open to the idea Bulgari, which is owned wasn’t right at that time,” Babin of buying from international re- by LVMH Moët Hennessy explained. “Today, it’s a different nowned luxury brands such as Louis Vuitton, opened the story: There are now luxury mall Bulgari, for instance. We do not tive — making this a game changer chised units in China, with four 1,800-square-foot store at the projects, besides Emporio [New create pieces that are already for our brand,” Babin said. boutiques in Shanghai alone. DLF Emporio mall here . The Delhi] and UB City [Bangalore], available on the market; for in- As for Bulgari’s other product “China has always been con- Indian government gave Bulgari which will appeal to our targeted stance, ethnic looking pieces. categories, they do not face the sidered as an investment for the the approval in June to open the customer base, and these pres- Instead we offer styles which same gap in the Indian market. long run and its slow one-digit store under the recent policy of ent a larger growth potential. are world icons and embody our “Despite the absence in our economic growth does not mean allowing foreign direct invest- Our expansion strategy should, Roman and Mediterranean heri- core business, which is jewelry, [in that Bulgari is condemned to ment in single-brand retail. The however, consist of a selective tages,” Babin said. India] we have been continuously single-digit growth but rather Italian company has launched mix of luxury malls and a few Given that Indian consumers present in luxury watches and inspired to outperform and sur- in India with a silent partner. top luxury hotels.” always have been world travel- fragrances through retailers and pass itself to become the ulti- The store launched with an ex- The luxury consumer in lers, they are evolved in their distributors. In terms of fragrance, mate reference in high luxury for clusive collaboration with Indian India has been a focus of inter- tastes for international icons we are among the top-three sell- Chinese consumers,” said Babin. designer Anamika Khanna, with est by global brands over the and designs, he explained, ers in the Indian market, which is “Regardless of the current slight her couture outfi ts highlighting last two years. “These are excit- pointing out that as Bulgari quite a performance,” Babin said. slowdown of the GDP, one should Bulgari jewelry. Bollywood ce- ing times for the luxury sector sold jewelry across many coun- Growth in the Asian market not forget that for the 10 years lebrities Sonam Kapoor, Arjun in India, which is buzzing with tries, “we believe that we will continues to be important for to come, China will most likely Rampal and others were among activity,” said Rajat Wahi, part- be able to get a growing market the brand. continue to be the number-one the guests at the opening. ner at KPMG India. “Players are share out of the entire cake.” “The Asian market has been growth engine of luxury world- Jean-Christophe Babin, the increasingly walking the extra “The chances of fi nding luxury performing well for us in gener- wide. Hence we will further in- firm’s chief executive officer, mile to overcome barriers typi- jewelry brands in India are still al, despite the political turmoil crease our investments in 2015, who was in New Delhi for the cally associated with operating very slim. The ever-increasing that took place in markets like like in India. Finding the right launch, said that this new step in India. Traditional ‘defi nitions’ number of shopping malls and Thailand earlier this year and kind of luxury retail space en- forward meant that “Bulgari is and ‘characteristics’ of luxury the rising number of wealthy peo- most recently in Hong Kong,” tails potential expansion into ad- increasingly interested in ex- consumers are evolving with in- ple make the growth outlook for he said, adding that Bulgari now ditional Indian major cities in the panding its Indian presence, creasing awareness among con- India’s luxury brand market posi- has 22 stores and seven fran- future,” he said. WWD TUESDAY, DECEMBER 23, 2014 7 WWD.COM
Eco-friendly fashion brand Reformation textiles became a certifi ed B Corp B Corps Catch Sustainability Wave in September. “Yvon Chouinard is getting older and Apolis, a men’s wear label that received By KHANH T.L. TRAN wants to make sure their legacy contin- its B Corp certifi cation in March 2012 ues,” said Jill Dumain, director of envi- after a two-year process. LOS ANGELES — Who would have thought ronmental strategy at Patagonia. “They At Apolis’ store in downtown Los that a toilet could play a role in launching a felt this was the best tool at their dispos- Angeles, Parton and his brother, Shea, socially responsible fashion business? able to make sure what they want to stay who serves as chief executive offi cer, dis- Lee Kimball, chief operating offi cer of in the company stays there.” play their B Corp certifi cation badge next a Pittsburgh-based textile supplier called By going through B Lab’s assessment, to their Council of Fashion Designers of Thread, was fi nishing a three-week pro- companies open themselves up to a cer- America membership insignia, surrounded cess last year to become certifi ed as a tifi cation process that some members by jute bags made by a co-op in Bangladesh benefi t corporation, or B Corp, when he describe as “invasive,” covering every- and chinos produced in Los Angeles. was stumped by a question determining thing from the toilets to recycling bins, “In a way, our generation has informa- if his fi ve-person company used a toilet paid vacation days and the difference in tion at our fi ngertips,” said Shea Parton, with low water fl ow. He snapped a photo salaries between the c-suite and rank- 30. “This is a smart business decision. of the contraption, sent it to the audi- and-fi le workers. If a company manufac- You give people information.” tor at the nonprofi t organization B Lab that was administering the stringent as- sessment, and waited to get his score Apolis displays its to determine whether he would join B Corp certifi cation Patagonia, Warby Parker and Seventh badge next to its CFDA Generation in a growing circle of socially membership insignia responsible businesses. He passed with in its L.A. store. a score of 99 compared to a median of 80. “When we formed the company [in 2011], we knew we wanted to be a B ’’ Corp,” Kimball said. Since receiving its certification in November 2013, Thread, which recycles plastic bottles collected in Haiti and other developing countries to manufac- ture into textiles in the U.S., has identi- fi ed around 10 companies interested in buying fabric from it partly because it’s a B Corp. It’s also using its assessment score as one criterion to raise more capital beyond its angel investors, po- tentially from the U.S. Small Business leave and shifting its sourcing to local Administration, Renewal Funds, SJF companies from New York-based fi rms. Ventures and other funds targeting com- Taking responsibility as a corporation panies that make a positive social and boosted its profi le among potential em- environmental impact. ployees and customers. Last year, when “For us, it’s a philosophical belief that it searched for a new social media man- businesses can be the thing that changes ager, Dogeared listed its B Corp status in and evolves the world,” Kimball said. This is a smart the job description and received close to “We found that [B Corp status] makes a 1,000 applications for the position. The tangible difference.” business decision. certification also helps convince cus- As interest in domestic manufacturing tomers who are deciding whether they and social compliance increases, espe- You give people should shell out $700 for an 18-karat gold cially in the aftermath of factory disasters pendant necklace from Dogeared. in Bangladesh and Cambodia and alleged “Having these points of differen- worker abuse in India, a growing number information. tiation are enough to sway people to of designers and executives are seeking to Shea and Raan Parton of Apolis. buy Dogeared,” said Dogeared ceo integrate practices that improve their em- — SHEA PARTON, APOLIS Merlin Clarke. ployees’ working conditions and the envi- Joining the B Corp ranks also brings ronment with accountability and transpar- certain advantages. Yael Afl alo, founder ency by becoming benefi t corporations. and ceo of Reformation, fi rst heard about The B Corp certifi cation is to business B Corps two years ago but had to priori- what the U.S. Department of Agriculture tize shipping boxes to support its rapid organic seal is to milk and what the LEED growth over completing an assessment. environmental standard is to architecture The Los Angeles-based fashion brand re- and construction. As of Dec. 10, there were ceived its certifi cation in September. With 1,177 certifi ed companies in 121 indus- 104 employees in manufacturing, 60 in tries in 37 countries, including the U.S., corporate, 22 staff members in its three Australia, Argentina, Brazil and Portugal. retail stores and $30 million in sales, it Consultants, lawyers and other service- now can seek tips and advice from other based occupations represent 64 percent of B Corps who are members of the same the businesses that received certifi cations Google Plus and LinkedIn groups. from B Lab. Companies in apparel, home ’’ “The idea of sustainable fibers is and personal care and textile sectors make tricky and hard to fi nd sources,” said up 8 percent of total certifi cations. Kathleen Talbot, Reformation’s sustain- “The largest hurdle is awareness,” ability manager. “If you have a tech chal- said a spokeswoman for Wayne, Pa.- lenge or if you have another challenge, based B Lab, which started in 2006. “The who else in B Corps can help?” movement is young, and while many com- Not all companies with a social mis- panies have acknowledged that it’s time sion fi t the B Corp mold. Toms, the foot- for a change, few realize that there is wear company that expanded its one-for- a certifi cation that looks at not just the Thread LLC works with Haitians to collect plastic that is one social entrepreneurship concept to product, but the company.” made into fabric used in bags, accessories and clothing. coffee, handbags and, through a Target
Following certification by B Lab, a JULIEN OFJOVAN JONES; THREAD COURTESY KATIE APOLISPHOTOSBY tie-in, apparel, is neither a B Lab-certifi ed company has the option to change its company nor a benefit corporation. A legal status to a benefi t corporation from tures more than fi ve percent of its goods, In return, benefit corporations re- spokeswoman for Los Angeles-based a limited liability one, a C corporation or it takes the manufacturing track of the ceive tips from B Lab for improving their Toms said becoming a B Corp is not part other business structure in 27 states. In assessment, answering questions about performance. Dogeared Inc., a Culver of the company’s current business plan. California, which legally recognized ben- the environmental and social impact of City, Calif.-based jewelry brand that be- Still, government offi cials are so keen efi t corporations in 2011, Patagonia be- its factories. For the retail track, a busi- came certifi ed as a benefi t corporation in to entice more businesses to jump on the came the fi rst company to convert from a ness addresses the social and environ- August 2011 and changed its legal status B Corp bandwagon that they’re consider- C to B corporation. Yvon Chouinard, who mental impact of its suppliers’ factories, to such a year later, implemented a mini- ing offering incentives for them to do so. founded Patagonia and owns it along with as well as that of its retail space. All mum two-week vacation for its 90 em- “We’re encouraging companies to his wife and two children who work at the these steps prove that making a profi t ployees upon learning that some work- be B Corps,” said Matt Petersen, chief company, even traveled from his base in isn’t their ultimate goal. ers who were paid to craft jewelry by the sustainability offi cer for the city of Los Ventura, Calif., to the state’s capital in “It’s all about thoughtful commerce,” piece didn’t take days off lest they lost Angeles. “We’re trying to bring more Sacramento for the legislation signing. said Raan Parton, creative director of income. It also began offering paternity green businesses here.” 8 WWD TUESDAY, DECEMBER 23, 2014 Consumers and Retailers Play Waiting Game {Continued from page one} son we did daily deals, where we reduce Barneys New York went with a designer semiannual sale. “It’s the fi rst time we According to America’s Research items we know the consumer would like sale of up to 60 percent off designer cloth- really get promotional. It’s always tradi- Group, 44.6 percent of consumers said to buy, for one day only. ing, shoes and accessories, and Saks Fifth tionally our biggest day.” The sale offers they would not shop over the Super “When you talk about the customer cli- Avenue also offered up to 60 percent off 25 percent to 50 percent off. Saturday weekend compared to 32.9 per- mate, we feel the consumer needs a rea- designer merchandise. On the upside, this year, certain re- cent last year. Mall traffi c continues to son to buy,” she added. “They’re asking, be “way down,” with only 20.4 percent ‘what’s different, what’s new?’ We do have of consumers indicating they would visit unique products, such as Heattech Fleece a mall over the weekend and shoppers and Water Defender Ultra Light Down. “extremely conservative and cautious With items that aren’t different, we’ve this season,” said ARG chairman and ceo been doing small promotions, like 50 Britt Beemer. He added that he expected percent off on an item for a limited time. retailers to be “very disappointed” with We’re proud of the products we’ve put out the turnout. The ARG consumer survey there. Especially in all our new markets, consisted of 1,000 telephone interviews it’s been a real learning curve for us.” with consumers conducted Dec. 19 to 21. At two of the nation’s largest malls There were numerous reports that this past weekend — the Mall of America malls on the East and West Coasts were in Minnesota and King of Prussia in busy last weekend, while much of the Pennsylvania — the turnout was tempo- There also was a strong feeling rest of the country saw less than satisfac- rarily impacted by demonstrations by that consumers still are holding tory traffi c. groups protesting grand-jury decisions not back their purchasing, playing the To try to get a lift in traffi c, Kohl’s on to charge white police offi cers in the kill- same waiting game with retailers Thursday said it would operate stores ings of unarmed black men in Ferguson, that they’ve done in recent years. nonstop beginning at 6 a.m. on Friday, Mo., and Staten Island, N.Y. Mall of “Over the past few years, we’ve no- Dec. 19 through Wednesday, Dec. 23 at 6 America was forced to close stores on its ticed a trend in customers waiting p.m. and provided strong incentives such east side and there were 25 arrests. At until the last minute to fi nish their as $10 Kohl’s cash for every $50 spent and King of Prussia, demonstrators lay down shopping,” said Scott McCall, senior Buy More Save More, where customers on the ground but there were no arrests. vice president of merchandising for save 20 percent for every $100 or more It’s not like consumers aren’t spend- Wal-Mart U.S. “While many custom- spent, and 15 percent for under $100. ing — electronics, home products, toys, ers start their Christmas shopping “Early morning and late night have automobiles and restaurants are all far- in November, the majority don’t put been the heaviest times,” said Shane ing well this season. Gift cards have been their lists away until Dec. 24.” Knoy, vice president and Los Angeles dis- a bright spot, too. Apparel is a different “There was only about a 2 per- trict manager at Kohl’s. “We saw people story, with some exceptions being luxury, cent increase on Super Saturday coming before work initially. As custom- boots, outerwear, ath-leisure, parts of Shoppers outside Macy’s in Manhattan Tuesday. weekend, with $42 billion in sales ers get days off around the holidays we’ll men’s wear and performance wear. JOHN AQUINO PHOTOS BY versus last year’s $41 billion,” see the pattern build said Craig Johnson, president where they’re out late Deals for consumers should peak dur- tailers, such as Macy’s, seem to be man- of Customer Growth Partners. with their families.” Traffi c was brisk ing the post-Christmas-to-New Year’s aging their inventory better than a year Saturday’s business alone gener- Consumers are buy- this weekend. run, which is a period of increasing im- ago, and the multichannel environment ated $23 billion, topping Black ing jewelry, “Frozen” portance to retailers marked by clear- is helping, too, whereby consumers have Friday’s $20 billion in sales, ac- SEE PAGE merchandise and brands ance sales, gift-card redemptions and at- more options on how to shop. Lower cording to CGP. such as Levi’s, Nike, tempts to sell fresh spring merchandise gas prices, lower unemployment and Simply Vera Vera Wang, at full price. this year’s extra shopping day between LC Lauren Conrad, A decent week up to New Year’s could Thanksgiving and Christmas should help Keurig and Kitchen lift the numbers a bit, though not by more as well. Aid, Knoy said, add- than a point, as retailers hope to inch Nomura Research also said Super
ing that sweaters and closer to meeting their goals of low-sin- Saturday “may have amounted to the warm-weather acces- gle-digit total holiday sales gains. biggest shopping day of the year,” con- sories have been strong “We think apparel chains and most curring with Customer Growth Partners. sellers in the L.A. re- department stores will miss plan, However, Nomura said, “We believe gion. “Wellness contin- though there will be exceptions,” December trends to date have been vola- ues to be a big focus for Johnson said. “Nordstrom and Neiman tile and are near expectations.” But with
American families with Marcus are close to plan, we think,” with post-Christmas traffic expected to be Fitbit,” he added. Nordstrom Rack on a roll. Macy’s, he strong, with consumers holding out for “Kohl’s pushed the said, seems to be tracking slightly below deals, and strong November trends seen, marketing effort re- Nordstrom’s, where the merchandise is Nomura expects a “solid but not spec- ally hard,” said Richard overall more expensive. tacular” holiday season, marked by com- Jaffe, an analyst at Stifel. “The problem is consumer demand parable store gains of around 1.5 percent “They have to get back is sluggish, at nine’’ out of 10 households to 2 percent for broadline, department market share. They have median income is fl at or down year-over- store and e-commerce retailers in the a new head of market- year,” Johnson said. “In the top 10 per- fourth quarter and 5 percent to 6 percent ing. They’re doing cou- centile, incomes are up,” helping Tiffany, for the hardlines group. pons and bounce backs. Nordstrom’s and Neiman’s. Women are less inclined to buy ap- They’re staying open Home Depot and Lowe’s also are parel this year than last because “the of- 24/7. Macy’s did it last having good seasons. “It’s a hardlines ferings have become much less exciting year.” Macy’s is doing it Christmas,” Johnson said. and there isn’t one clear trend driving again at certain locations “Everybody is complaining about apparel for the teen and adult woman,” this season. how bad their business is and the media Jaffe said. “It’s going to be interesting to Wal-Mart customers keeps talking about how great the deals see how much of this 40 percent off and tend to be procrastina- are,” said one retail executive at a high- 50 percent off business has been planned tors. More than one- end chain. “Even people with money and margins engineered accordingly.” third of Wal-Mart shop- don’t feel an urgency to shop and still Susan Anderson, a retail analyst at pers surveyed recently look for discounts.” FBR Capital Markets, said “On Saturday, said they were plan- mall traffi c seemed to improve and peo- ning to shop on Super Saturday. Most of Super Saturday came out on top of ple were buying. It seems that promo- Wal-Mart’s stores are operating round the season due to several factors — easy tions have picked up heading into the the clock in the last days leading up to comparisons to last year, Black Friday We think apparel Super Saturday weekend as retailers Christmas, and the world’s largest retail- getting deflated by Thanksgiving Day tried to grab consumers’ last dollars. It er will close later than most stores do on openings and pre-Thanksgiving sales, chains and most will be fl attish to slightly higher for most Christmas Eve, at 8 p.m. The retailer said and cold but clear weather. Also, the tim- retailers. Missy is really tough right now. its stores will continue to receive toys, ing was advantageous, four days before department stores will The Gap is having its own issues and electronics and home goods until Dec. Christmas and before most people’s trav- causing everyone else to promote. Out of 24., and it unveiled a new round of price el plans for the holiday, Johnson noted. the missy category, Chico’s should per- rollbacks including the NutriBullet PRO Currently, most estimates expect holi- miss plan, though there form the best. Men’s is still doing better 900, $129 with a $10 Wal-Mart gift card (a day retail to be from fl at to up less than than women’s.” $30 value) and Air Hogs RC Zero Gravity 4 percent on the top line though mar- will be exceptions. Jennifer Black, president of Jennifer Laser Racer $29.88, a $5 savings. gins will suffer, most acutely at depart- Black Associates, said the key apparel Uniqlo also worked hard to generate ment and apparel specialty stores, as — CRAIG JOHNSON, category this holiday season is pajamas, greater foot traffi c. “We’ve done some discounting has been sustained all sea- which she said are sold out in many sizes last-minute promotions — lightweight son. Last weekend, markdowns acceler- CUSTOMER GROWTH PARTNERS at Victoria’s Secret and other retail- cashmere and merino sweaters are ated and will continue to crescendo this ers. Hats, gloves and handbags at Kate marked down to $29.90 from $59.90,” a week, even at the highest-priced retailers Del Vecchio said Brooks Brothers Spade and Michael Kors sold well and spokeswoman said. “It’s a last-minute where selling has been better than most. was more promotional than originally fragrance and body lotions were strong. deal because the sweaters are selling This week, Neiman Marcus was offer- planned, though less promotional than Apparel with lace and real leather but we want to generate some foot traffi c ing up to 55 percent off when one takes department stores. On the day after proved to be popular. “Anything with nov- in the store. For the fi rst time this sea- 25 percent off already reduced prices; Christmas, Brooks Brothers’’ starts its elty did well,” she said. WWD TUESDAY, DECEMBER 23, 2014 9 WWD.COM Digital Boom Kickstarts Delivery Rush
By RACHEL STRUGATZ
RETAILERS RACKED up strong e-commerce sales last week as holiday shipping cutoffs ap- proached, gearing up for the mad dash on Monday to de- liver the last packages before Christmas Day. UPS said today will be its heaviest shipping day of the year. While a spokesperson declined to share what days incurred the most orders, the carrier predicts that 34 million packages will be delivered today, about a 10 per- cent increase from last year’s 31 million. Last week was another high- traffic e-commerce week, as Dec. 15 and Dec. 18 were the last days for free ground ship- ping for many retailers, depend- ing on which carrier they used. Not for Amazon, though, which said on Dec. 16 that it would extend its free shipping for orders placed through Dec. 19. The deal gets even better for Prime members, who were eligible for free shipping for or- ders placed on Monday and are guaranteed a Christmas Eve ar- rival date (there is even one-day shipping that costs $2.99). On UPS predicted it would deliver 34 million packages Monday.
Dec. 18, Amazon said it would JUSTIN SULLIVAN/GETTY IMAGES PHOTO BY offer free two-hour delivery to
Prime members in Manhattan EasyPost, said that while Dec. encourages consumers to pick via the Prime app, and if that’s 15 has historically been the up the orders they’ve placed on- Last week was another high-traffic not quick enough for some, an largest shipping days for FedEx line in-store as well, while eBay expedited one-hour delivery and the United States Postal Now was solely a same-day de- e-commerce week, as Dec. 15 and service cost just $7.99. Service, same-day shipping op- livery service. “The largest pure e-com- tions might start to erode that. However, same-day services merce play came’’ out and an- “The bar keeps getting high- still are restricted to cities, and Dec. 18 were the last days for free nounced it extended the dead- er for delivery experience. most of America still lives out- line for free shipping. That’s an Amazon is driving a lot of that, side same-day availability zones ground shipping for many retailers. interesting trend, [but] it can [and] Best Buy, Wal-Mart and — making the cutoff dates still be a somewhat negative signal Target are all doing same-day important for the majority of for the market,” Calvin Silva, delivery. The speed at which the U.S. consumers. senior retail analyst at Nasdaq market is taking on these new Streebin said his San Advisory Services, said. “It delivery methods is really quick, Francisco-based company, which could be a negative indicator too,” Streebin said. works with an application pro- that the inventory levels are Dec. 22 is no longer the cutoff gramming interface, or API, that higher than anticipated.” — and given that the few days allows the hundreds of retail- It’s an attempt by Amazon leading up to Christmas are ers it works with to “ship like to try to capture that last bit of among the biggest of the sea- Amazon,” will see upward of $1 traffi c — but it will be at the ex- son because of perennial late billion in gross merchandise vol- pense of margin, Silva warned. shoppers, increased adoption of ume this year. Services like pur- chase, tracking, rates, customs and address verifi cation are all provided by EasyPost. The bar keeps getting higher He contended that Dec. 15 was not a record day for orders, for delivery experience. Amazon is and Dec. 12 and 13 saw a large amount of orders, but the big- driving a lot of that, [and] Best Buy, gest days so far have been early in the season. Wal-Mart and Target are all Last year’s shipping deba- cle — a combination of higher- Amazon extended its pre-Christmas free shipping window. than-expected orders coupled doing same-day delivery. with bad weather — led retail- it comes to delivery in the days drascott.com saw growth rates ers to push marketing messages leading up to Christmas. of about 150 to 160 percent year — JARRETT STREEBIN, EASYPOST and sales earlier in the season. For John Tomich, ceo of e- over year, and Cyber Monday Carriers warned retailers and commerce solution provider week fueled the site to 190 consumers in an effort to try OneStop Internet, Dec. 15 no percent growth. But it was the Examining data from a retail same-day shipping has the po- and get as many sales as pos- longer holds a candle to other second week in December that standpoint, Silva said stock levels tential to change “the econom- sible during the fi rst week of record online shopping days. saw a 210 percent increase year- still are looking good — nothing ics a lot,” he said. December to avoid late deliv- “While it’s historically a big over-year — the second largest is picked over — and promotions “It starts to move the needle, eries. FedEx and UPS have in- day for e-commerce, Dec. 15 or- so far this year behind Dec. 17 are still consistently elevated. but it takes pressure off the vested about $1 billion each to ders don’t even come close to the and Dec. 18, which saw 217 per- Experts speculate that his- major carriers,” Streebin said increase their shipping capaci- sales we see across Cyber Week cent and 422 percent increases torical high-volume order days of Amazon taking on some of ties this year. and we expect that to continue in sales, respectively. — like Dec. 15 — are becoming the shipping responsibilities A potential problem, Streebin into the future,” Tomich said. The company’s e-commerce less of an event. In their view, with its own delivery vehicles. explained, is that UPS, FedEx Lon Weingart, ceo at jewelry business has grossed $5 million marketing efforts unleashed “This takes some of the volume and USPS have to plan for vol- brand Kendra Scott, expects in sales from the day before earlier than ever in November off of major carriers — which ume six months in advance — the company to gross $65 mil- Thanksgiving through the eve- fueled record sales at the onset can likely lead to more success- and when they were strategizing lion in sales for the year, driven ning of Dec. 15 — but he said of the season, while extended ful deliveries.”’’ for the holiday season, they had by wholesale, e-commerce and Dec. 17 through Dec. 18 would be free-shipping dates and retail- On Dec. 16, eBay said it no way of knowing that oil prices 17 retail doors spanning seven the last big days for orders prior ers increasingly offering same- would expand its eBay Local would be lower and consumers states. Cyber Monday was the to Christmas. “For us, we’re on a day delivery options could start initiative in Brooklyn, a con- would have more money in their fi rst time the brand’s Web site little bit of a different schedule. to nip at the heels of the tradi- tinued effort on behalf of the pockets to shop. surpassed $1 million in sales, al- We utilize UPS for ground ship- tional shopping “cutoff ” dates company to distinguish from “They can’t just summon most tripling last year’s $384,000 ping, and they are fairly confi - for online orders. eBay Now, the original same- more drivers on the day of, it’s in sales for the same day. dent that they can deliver prior Jarrett Streebin, founder day program introduced by the not Uber,” Streebin said of po- He said that in the two weeks to Christmas from noon on that and chief executive offi cer of company in 2012. EBay Local tentially limited resources when leading up to Black Friday, ken- date,” Weingart said. 2.5x7 (right)
10 WWD TUESDAY, DECEMBER 23, 2014 WWD TUESDAY, DECEMBER 23, 2014 11 WWD.COM
“I wouldn’t CAPE turn down a e e “I just want people to make “More socks. “Every year Rothko.” y donations, like to Oxfam Always more socks.” America, for example. You — SCOTT EASTWOOD my dad — MICHAEL KORS takes me can buy a pig, a goat, a sheep somewhere and it goes to a family.” special that —ROONEY MARA I’ve always wanted to go to. I really “I saw some want to go to amazing jewelry Africa. Maybe pieces by Cape Town.” Fernando Jorge — NICOLA PELTZ recently and would LOVE something from there.” All This —LELA ROSE “Anything that comes out of that For Me? orange box!” “Twenty kilos Can anyone spare a Rothko? In the spirit — DENNIS BASSO of the season, we asked celebrities and of youth.” designers to share their deepest, sincerest — ROBERTO wishes for the holidays. — WWD Staff CAVALLI “Anything that comes out of that orange box!” —DENNIS BASSO
REACH THE FASHION INDUSTRY’S TOP TALENT “Wouldn’t it be nice “A tattoo gun. if Santa’s elves could I started giving finish my collection early tattoos recently. and have it beautifully I’ve given five. wrapped under my tree And now I want “A puppy. I better get one. I’m letting the my own gun. on Christmas morning?” world know I want a puppy. I love all breeds.” WWDCAREERS COM PRINT & ONLINE PACKAGES AVAILABLE — CYNTHIA ROWLEY —MARGOT ROBBIE — NATASHA POLY Contact Christen Cosmas, WWD Classifi ed/Careers at 212.630.3937 or [email protected] TOWN, CHRISTMAS PRESENTS, SHEEP, BEAGLE AND SOCKS PHOTOS BY GETTY IMAGES/ISTOCKPHOTO; DECORATIVE GOLD FRAME PHOTO BY RICHARD ROSS/GETTY IMAGES; TATTOO GUN PHOTO BY TARA HERRON/GETTY IMAGES/HEMERA; UNTITLED BY MARK ROTHKO PHOTO BY CHRISTIE’S IMAGES/CORBIS; HERMÈS BOX PHOTO BY JAMES KEYSER/THE LIFE IMAGES COLLECTION/GETTY. CHRISTIE’S IMAGES/CORBIS; HERMÈS BOX PHOTO BY PHOTO BY HERRON/GETTY MARK ROTHKO IMAGES/HEMERA; UNTITLED BY TARA GUN PHOTO BY RICHARD ROSS/GETTY PHOTO BY GOLD FRAME IMAGES; TATTOO GETTY BEAGLE AND SOCKS IMAGES/ISTOCKPHOTO; PHOTOS BY DECORATIVE TOWN, CHRISTMAS PRESENTS, SHEEP, PELTZ PHOTO BY KATIE JONES; CAVALLI 1987 PHOTO BY RON GALELLA COLLECTION/WIREIMAGE; CAVALLI AND BASSO PHOTOS BY GIOVANNI GIANNONI; ROWLEY AND ROBBIE PHOTOS BY STEVE EICHNER; KORS PHOTO BY EVAN FALK; MARA PHOTO BY STÉPHANE FEUGÈRE; POLY AND EASTWOOD PHOTO BY DIMITRIOS KAMBOURIS/GETTY AND EASTWOOD PHOTO BY IMAGES FOR THOMAS HUGO BOSS; IANNACCONE; ROSE PHOTO BY STÉPHANE FEUGÈRE; POLY PHOTO BY MARA FALK; EVAN PHOTO BY STEVE EICHNER; KORS GIANNONI; ROWLEY AND ROBBIE PHOTOS BY GIOVANNI AND BASSO RON GALELLA PHOTOS BY COLLECTION/WIREIMAGE; 1987 PHOTO BY CAVALLI JONES; CAVALLI KATIE PHOTO BY PELTZ 2.5x7 (right)
10 WWD TUESDAY,TUESDAY, DECEMBERDECEMBER 23,23, 20142014 WWD TUESDAY,TUESDAY, DECEMBERDECEMBER 23,23, 20142014 11 WWD.COM
“I wouldn’t CAPE CAPE turn down a e e “I just want people to make “More socks. “Every year Rothko.” y donations, like to Oxfam Always more socks.” America, for example. You — SCOTT EASTWOOD my dad — MICHAEL KORS takes me can buy a pig, a goat, a sheep somewhere and it goes to a family.” special that —ROONEY MARA I’ve always wanted to go to. I really “I saw some want to go to amazing jewelry Africa. Maybe pieces by Cape Town.” Fernando Jorge — NICOLA PELTZ recently and would LOVE something from there.” All This —LELA ROSE “Anything that comes out of that For Me? orange box!” “Twenty kilos Can anyone spare a Rothko? In the spirit — DENNIS BASSO of the season, we asked celebrities and of youth.” designers to share their deepest, sincerest — ROBERTO wishes for the holidays. — WWD Staff CAVALLI “Anything that comes out of that orange box!” —DENNIS BASSO
REACH THE FASHION INDUSTRY’S TOP TALENT “Wouldn’t it be nice “A tattoo gun. if Santa’s elves could I started giving finish my collection early tattoos recently. and have it beautifully I’ve given five. wrapped under my tree And now I want “A puppy. I better get one. I’m letting the my own gun. on Christmas morning?” world know I want a puppy. I love all breeds.” WWDCAREERS COM PRINT & ONLINE PACKAGES AVAILABLE — CYNTHIA ROWLEY —MARGOT ROBBIE — NATASHA POLY Contact Christen Cosmas, WWD Classifi ed/Careers at 212.630.3937 or [email protected] TOWN, CHRISTMAS PRESENTS, SHEEP, BEAGLE AND SOCKS PHOTOS BY GETTY IMAGES/ISTOCKPHOTO; DECORATIVE GOLD FRAME PHOTO BY RICHARD ROSS/GETTY IMAGES; TATTOO GUN PHOTO BY TARA HERRON/GETTY IMAGES/HEMERA; UNTITLED BY MARK ROTHKO PHOTO BY CHRISTIE’S IMAGES/CORBIS; HERMÈS BOX PHOTO BY JAMES KEYSER/THE LIFE IMAGES COLLECTION/GETTY. CHRISTIE’S IMAGES/CORBIS; HERMÈS BOX PHOTO BY PHOTO BY HERRON/GETTY MARK ROTHKO JAMES IMAGES/HEMERA; KEYSER/THE UNTITLED LIFE IMAGES BY COLLECTION/GETTY. CHRISTIE’S IMAGES/CORBIS; HERMÈS BOX PHOTO BY PHOTO BY HERRON/GETTY MARK ROTHKO TARA IMAGES/HEMERA; UNTITLED BY GUN PHOTO BY TARA RICHARD ROSS/GETTY GUN PHOTO BY PHOTO BY GOLD FRAME IMAGES; TATTOO RICHARD ROSS/GETTY GETTY PHOTO BY BEAGLE AND GOLD SOCKS FRAME IMAGES/ISTOCKPHOTO; PHOTOS BY IMAGES; DECORATIVE TATTOO GETTY BEAGLE AND SOCKS IMAGES/ISTOCKPHOTO; PHOTOS BY DECORATIVE TOWN, CHRISTMAS PRESENTS, SHEEP, TOWN, CHRISTMAS PRESENTS, SHEEP, PELTZ PHOTO BY KATIE JONES; CAVALLI 1987 PHOTO BY RON GALELLA COLLECTION/WIREIMAGE; CAVALLI AND BASSO PHOTOS BY GIOVANNI GIANNONI; ROWLEY AND ROBBIE PHOTOS BY STEVE EICHNER; KORS PHOTO BY EVAN FALK; MARA PHOTO BY STÉPHANE FEUGÈRE; POLY AND EASTWOOD PHOTO BY DIMITRIOS KAMBOURIS/GETTY AND EASTWOOD PHOTO BY IMAGES FOR THOMAS HUGO BOSS; IANNACCONE; ROSE PHOTO BY DIMITRIOS KAMBOURIS/GETTY AND EASTWOOD PHOTO BY IMAGES FOR THOMAS HUGO BOSS; IANNACCONE; STÉPHANE FEUGÈRE; POLY ROSE PHOTO BY PHOTO BY MARA FALK; STÉPHANE FEUGÈRE; POLY EVAN PHOTO BY PHOTO MARA BY STEVE EICHNER; KORS GIANNONI; FALK; ROWLEY AND ROBBIE PHOTOS BY GIOVANNI EVAN AND BASSO RON GALELLA PHOTOS BY PHOTO BY COLLECTION/WIREIMAGE; 1987 PHOTO BY CAVALLI STEVE EICHNER; KORS JONES; GIANNONI; CAVALLI ROWLEY AND ROBBIE PHOTOS BY GIOVANNI AND BASSO RON GALELLA PHOTOS BY COLLECTION/WIREIMAGE; 1987 PHOTO BY CAVALLI KATIE JONES; CAVALLI PHOTO BY KATIE PHOTO BY PELTZ PELTZ 12 WWD TUESDAY, DECEMBER 23, 2014 WWD.COM
as well as the rights of the more than 45,000 individuals, who are employed directly or MEMO PAD indirectly in its production supply chain in FASHION SCOOPS Italy,” said the company. Gucci noted that the supplier the show GUCCI FIGHTS BACK: Italian TV show “Report” focused on, the company Mondo Libero (from ARMANI’S CHOICE: Giorgio Armani show “House of DVF.” The zeroed in on Gucci on Sunday evening during its mid-2013 through a fi rm called Almax), is continues to support young show tracked 10 young women latest attack on the luxury industry. According responsible for 0.19 percent of Gucci’s entire designers by hosting the show as they competed against one to presenter Milena Gabanelli and the show’s production of leather goods. of Edmund Ooi at his Armani another for the title of brand investigations, Gucci allegedly employs low- “Mondo Libero has been subjected to several Theater on Jan. 17, the fi rst ambassador at the company, cost Chinese workers behind Italian fi gurehead audits in past months, even during the night, day of the upcoming Milan which aimed to reach a new artisans — an accusation the Florence-based that have highlighted issues relating to working Men’s Fashion Week. “The generation of prospective company fi rmly refuted on Monday morning. conditions. Gucci requested that corrective initiative to support the new customers for DVF. “Gucci completely disassociates itself from actions be taken to rectify the issues that were generation of designers, Von Furstenberg was in both the content and the form” of the show, identifi ed. Mondo Libero had given evidence which started a few seasons L.A. Sunday night for a special said the company, noting that Gabanelli “has that the issues have been addressed and mostly ago, continues to excite me screening of the show’s fi nal deliberately avoided to seek comment from resolved,” the luxury fi rm said. because I concretely see the episode at The Grove, where Gucci in relation to what she was covertly Addressing “the apparent indecision” seen results and I try to keep an she recently opened a store. fi lming for more than fi ve months. Hidden on one inspector recorded through a hidden international perspective,” “It was a very fun experience and inappropriately used cameras, shooting camera, Gucci noted that inspections are fi rst Armani said, pointing to the and I ended up hiring three carefully selected supplier companies (three based on an audit of pertinent documents and fact that Ooi was born in girls,” she said. “I loved it out of a total 576), do not provide for a true or then based on action. Malaysia, where at age 19 because I love being with accurate representation of Gucci and its supply- “The video recordings are focused on he received the Best Avant- young girls for the very special chain policies and procedures.” the fi rst part,” the company said. “It is also Garde Designer moments that “Report” accused Gucci of advocating t important to note that inspectors do not have award, and he now FOR MORE gives them [hope he employment of Chinese low-cost immediate coercive rights, but recommend lives and works in that] everything is workers. This allegation is “false and void actions based upon the outcome of the audits. Antwerp, Belgium. SCOOPS, SEE possible.” of any foundation and strongly defamatory,” The audit in question highlighted issues that “I’m incredibly Not only was responded Gucci, as is a phrase pronounced have subsequently been addressed.” honored that WWD.com Hampton offered during the show that “within the company “Report” also accused Gucci of steep Giorgio Armani a one-year there must be an Italian fi gurehead.” product mark-ups, and the company also chose me to show contract to be The show’s tie-up with laboratories challenged this accusation. my collection in his beautiful the company’s brand that employ low-cost Chinese workers “‘Report’ compares in an incorrect way theater,” Ooi said. “For a ambassador, but show “unbeknownst to Gucci” and “sabotaging the the price of a bag to the consumer with the young designer like me, contestants Lenore Genovese and existing control systems, is a scam. Gucci cost of a single phase of production. The 24 words are not enough to Tiffani Warkenthien also were disassociates itself from this practice and will euros [or $29.34 at current exchange] cited in express the emotion and offered positions within the take all the necessary actions against those the report refers solely to the cost of partial gratitude to be able to unveil company. Genovese now works responsible,” it said. assembly and does not take into consideration, my work and the things I trust in wholesale and Warkenthien The company is a staunch supporter for example, the cost of the raw materials to the world.” is at the DVF store in New of Made in Italy production and touts the (leather), the metal hardware, the cost of Previously, Armani put York’s Meatpacking District. transparency of its pipeline. On Monday, cutting, the packaging, the shipping and the his theater at the disposal of Von Furstenberg said she Gucci stated that it produces 100 percent of other costs associated with the sale of the bag emerging designers including had been approached with a its leather goods in Italy, employing more than in the store, all factors which would require Andrea Pompilio, Stella Jean, Julian number of TV shows, which 7,000 individuals between fi rst-tier suppliers that the cost provided be multiplied by up to Zigerli, Au Jour le Jour’s Diego she called “all bad ideas,” until (with 1,981) and second-tier ones. Of these 25 times,” Gucci said. Marquez and Mirko Fontana, the offer to do the reality show employees, around 90 percent are Italian The show has over the years tackled the Christian Pellizzari and Angelos with E! came up. “It felt right citizens, while all 576 supplier companies are issue of ethical manufacturing in the luxury Bratis. — ALESSANDRA TURRA because it’s real,” she said. registered corporations in Italy. goods sector. In November, a “Report” episode Von Furstenberg is now off “Gucci has been working for years to drove Moncler shares down 4.7 percent and DVF IN L.A.: Diane von Furstenberg to Papua New Guinea, where maintain its production in Italy and will caused the fashion brand to take legal action crowned Brittany Hampton she said she plans to spend consider all options available to defend and against the program. global ambassador in the the holidays. protect its rights, reputation and brand image, — LUISA ZARGANI season fi nale of her E! reality — KARI HAMANAKA Brown’s Tricky Turnaround at American Apparel {Continued from page one} “It’s not easy,” she said of turning That’s a reference to Charney’s well- around a company. “It’s disciplined Five of the top seven spots at American established antics and libertine lifestyle, work…but in the end, I do believe that Apparel are now held by women. which led to a fl urry of sexual harassment we have the depth and the breadth to do suits and myriad headlines (although what needs to be done.” none of the suits was ever proven). While never short on buzz, the fi rm “I really respect Dov’s visionary and has struggled on the bottom line. Net creative approach to this business,” Brown losses for the last four years have tallied said. “He built an incredible company. I $268 million. Even so, the brand has man- don’t think anybody would argue with that. aged to draw a steady stream of attention Yet in today’s public-company environ- from would-be investors. ment [there is] the need for public-com- American Apparel confi rmed for the pany leadership. New fi rst time Monday that leadership will greatly it received an indica- benefi t this company.” tion of interest to ac- Things are already quire the company for much changed. Five of $1.30 to $1.40 a share. the top seven spots in Sources said that in- the company are now terest comes from the held by women. John Howard-led Irving They include Brown, Place and is contingent director Laura Anne upon due diligence. Lee, incoming ceo American Apparel Schneider, general coun- also put into place a sel Chelsea Grayson, poison pill stockholder president of retail rights plan, which makes Nicolle Gabbay, presi- it prohibitively expen- dent of wholesale Pat sive for anybody to gain outs, he linked up with investor Standard [Mayer] and worked against me. I gave Honda and senior cre- a controlling share of General and cut a deal that helped him them my shares so that I could come back ative director Iris Alonzo. the company without boost his stake to 43 percent and provided and run this company. I bet the farm and Brown joined the Colleen Brown going through the board. that they share the voting rights. they robbed me.” board in August and Investors have grown But Standard General also agreed to Charney also reportedly said he was takes over from co- increasingly bullish on support the company with $25 million in staying with a friend on the Lower East chairs Allan Mayer and David Danziger, the stock in recent days, driving it up 6.5 fi nancing and helped remake the com- Side of Manhattan and had $100,000 left who remain directors and are the only percent Monday to $1.14, giving it a mar- pany’s board, which then fi red Charney as he mounts his comeback. two holdovers from the board that ini- ket capitalization of $199 million. last week. A spokeswoman for Standard General, tially suspended Charney this summer. The real x-factor for American “I gave [Standard General] my entire said, “Our objective is to help American She was president and ceo of media fi rm Apparel is what Charney will do. He is life’s work and they agreed to put me Apparel grow and succeed. We supported Fisher Communications Inc. for eight said to believe that he could bring law- back in, but instead they used this in- the independent, third-party and very years beginning in 2005. suits pursuing hundreds of millions of vestigation to fi re me,” said Charney last thorough investigation into the allegations Brown said American Apparel was well dollars in damages. week, according to Bloomberg. “They against Mr. Charney, and respect the board situated to make a transition, improve ef- The colorful Charney was suspended in betrayed me. I gave them my heart, of director’s decision to terminate him fi ciencies and return to growth mode. June amid allegations of misconduct. On the my shares, they teamed up with Allan based on the results of that investigation.”