TOP TEN STORIES WWD

MONDAY, DECEMBER 16, 2013 Q $3.00 Q WOMEN’S WEAR DAILY 1 SAKS IS BOUGHT BY RICHARD BAKER’S HBC. THE HEDI SLIMANE DEBATE. 6 PHOTO BY STÉPHANE FEUGÈRE PHOTO BY PHOTO BY KYLE ERICKSEN KYLE PHOTO BY 2 2013 THE YEAR IN FASHION 7

ON THE TECH FRONT: OMNICHANNEL, BIG CHANGES AMAZON, TWITTER AT LOUIS VUITTON. AND MORE. PHOTO BY GIOVANNI GIANNONI GIOVANNI PHOTO BY PHOTO BY GETTY IMAGES PHOTO BY

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THE GLOBAL NEIMAN MARCUS ECONOMY’S RUSTY SELLS FOR $6 BILLION. RECOVERY. PHOTO BY GETTY IMAGES PHOTO BY

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MYRON E. “MIKE” NEWSMAKER OF THE YEAR ULLMAN 3RD RETURNS TO A STRUGGLING RACE RELATIONS J.C. PENNEY. THE HEAT UP AT RETAIL. PHOTO BY STEVE EICHNER PHOTO BY PHOTO BY STEPHEN SULLIVAN PHOTO BY 5 BANGLADESHI 10 WORKER THE FASHION WORLD SUFFERED A MAJOR BLACK EYE THIS YEAR WHEN TRAGEDIES IN THE BANGLADESH GARMENT INDUSTRY CLAIMED THE LIVES OF MORE THAN A THOUSAND PEOPLE. A GLOBAL OUTCRY ENSUED, STIRRING A DEBATE OVER THE HUMAN PRICE OF CHEAP CLOTHING AND INCREASING PRESSURE ON BANGLADESH TO IMPROVE FACTORY CONDITIONS IN ITS THE RUNWAY: APPAREL INDUSTRY, WHERE 85 PERCENT OF THE WORKERS ARE PUSHING FASHION’S WOMEN EARNING A MINIMUM WAGE OF $68 A MONTH. THE BATTLE FOR LIMITS. PHOTO BY EMDAD ISLAM BITU MEN’S WEARHOUSE. PHOTO BY ROBERT MITRA ROBERT PHOTO BY PHOTO BY STÉPHANE FEUGÈRE PHOTO BY PLUS: ĊBEST PARTIES ĊFASHION TICKER ĊMEDIA MOMENTS ĊTHEY SAID IT 2 WWD MONDAY, DECEMBER 16, 2013 WWD.COM

Crestview Partners Buys NYDJ THE BRIEFING BOX IN TODAY’S WWD EXCLUSIVE Helena Christensen in NYDJ’s fall ad campaign.

By ARNOLD J. KARR Roberto Cavalli with models at the Manhattan Just Cavalli store. For IN THE LATEST in a continuing more, see page 26 and WWD.com. series of acquisitions of premium denim companies this year, Crestview Partners has agreed to buy NYDJ Apparel LLC and has reportedly enlisted former VF Corp. chief ex- ecutive officer Mackey McDonald to serve as the brand’s chairman. Edwin Lewis, who has served as chairman and ceo of the com- pany since its 2008 acquisition by New York-based private equity firm Falconhead Capital LLC, will re- portedly leave the firm upon the close of the deal. North Face, Vans, Seven For All Mankind, Nautica and, most recently, Timberland. Lewis also has a stake in NYDJ that will be sold STEVE EICHNER PHOTO BY to Crestview and its partner in the transaction, Since he retired, McDonald has served as a di- Maybrook Capital Partners. rector of Wachovia Corp., Wells Fargo & Co. and The parties declined comment on either the pur- Tyco International Ltd. in addition to numerous Crestview Partners has agreed to buy NYDJ Apparel LLC and chase or McDonald’s involvement. However, market civic and philanthropic commitments. has reportedly enlisted former VF Corp. chief executive officer sources told WWD that McDonald, who’s been a se- Based in Vernon, Calif., NYDJ, originally known Mackey McDonald to serve as the brand’s chairman. PAGE 2 nior adviser to Crestview since retiring from VF in as Not Your Daughter’s Jeans before a re-branding 2008, was the choice for the post. The identity of the effort overseen by Lewis, has carved out a lucra- The CFDA will work with Ruth Finley and the Fashion Calendar new ceo is expected to be revealed upon the closing tive niche among women generally aged 35 and on the New York Fashion Week schedule, starting with the round of the transaction. up who’ve sought the sexiness of the skinny jeans of fall shows in February. PAGE 2 Financial details of the transaction weren’t dis- favored by teens and young adults without the fit closed, although reports from Moody’s Investors constraints. The company has boasted that its “Lift Service and Standard & Poor’s Rating Services said Tuck Technology” helps women look and feel a size The Bangladeshi worker, the focus of the industry following a $150 million term loan and $50 million second- smaller and enlisted Helena Christensen for a fall tragedies that claimed the lives of more than 1,000 people, PAGE 4 lien term loan were secured to finance the arrange- 2013 ad campaign, its first on television, dubbed was chosen as the 2013 Newsmaker of the Year. ment, which would also include equity investments “Walk in Beauty.” from Crestview and Maybrook. Acquisition activity has been heated in the The top 10 stories of the year — including the sale of Saks, Falconhead reportedly paid about $100 million premium denim market for the entire year. Last the changes at Louis Vuitton and Myron E. “Mike” Ullman 3rd’s for the company five years ago, when its sales were week, Fifth & Pacific Co.’s Inc. sold Lucky Brand return to J.C. Penney — are profiled. PAGES 6-22 about $80 million, and had attempted to sell it at to Leonard Green Partners for $225 million, while auction in 2011 for more than $300 million. Sales this Joe’s Jeans Inc. acquired its City of Industry, Calif., The year was filled with media stories, including changes at year are estimated to be about $200 million, accord- neighbor, Hudson Jeans, for $97 million in October. Time Inc., Amazon.com’s Jeff Bezos buying The Washington ing to market sources and a report from Moody’s. Earlier in the year, TowerBrook Capital Partners Post and the death of Peter W. Kaplan. PAGE 23 The deal would be the first for Crestview in the bought True Religion Apparel Inc. for $835 mil- fashion sector. lion and Silver Jeans parent Western Glove Works There was quite a jam-packed party docket in 2013, and the

McDonald had a 12-year run as ceo of VF dur- acquired Simply Blue, marketers of Jag Jeans and Eye takes a look at the best bashes of the year. PAGE 24 ing which it was transformed from a manufacturer Christopher Blue denim, from W Diamond Group. of Wrangler and Lee Jeans and several innerwear And denim acquisitions — outside the premi- Burberry Beauty Box, a new retail concept that sells the labels into a brand portfolio powerhouse that this um area — might not be done for the year. The brand’s makeup, fragrance and accessories, has landed in year is expected to hit $11.5 billion in sales, rank- Jones Group Inc.’s jeans brands, including Gloria London’s Covent Garden. PAGE 26 ing it as the largest U.S.-based apparel firm. Brands Vanderbilt and L.E.I., might be close to being brought in during McDonald’s tenure and since sold to Sycamore Partners along with the rest of under his successor, Eric Wiseman, include The the company. Rick Owens on Saturday opened a 2,150-square-foot flagship in Miami’s Design District. PAGE 26

Shop Hers, a resale site geared for designer labels, has secured its Series A financing with the help of Bono. PAGE 26

CFDA Links Up With’’ Fashion Calendar Self Magazine is the next in line to get its own digital channel early next year as part of Condé Nast Entertainment’s push to “Fashion week is complex,” Kolb said. “It’s eight expand the digital strategy for the publishing company. PAGE 27 By MARC KARIMZADEH days, maybe nine, if you count the Wednesday be- fore. The more people that can help navigate this, Myron E. “Mike” Ullman 3rd, chief executive officer of J.C. NEW YORK — There’s been talk recently of im- the better the experience, both on the front end in Penney Co. Inc., was named chairman of the Dallas Federal proving the overall New York Fashion Week ex- the scheduling so there is some rhyme and reason Reserve Bank. PAGE 27 perience. Now the Council of Fashion Designers to the very full calendar, but also, equally as impor- of America is making a significant move to aid tant, for the users of fashion week.” ON WWD.COM those efforts. Among CFDA’s contributions will be increased The CFDA is taking a more active role in the technology. For example, cfda.com, as part of the EYE: Miranda Kerr, Heather Graham, Caitlin Fitzgerald planning of shows and presentations, and will collaboration, will feature its own version of the and Sofía Sanchez Barrenechea joined Roberto Cavalli at work with Ruth Finley and fashion week calendar that the opening of the new Just Cavalli store in Manhattan. the Fashion Calendar, start- will be user-friendly and ac- For more, see WWD.com. ing with the round of fall cessible to CFDA members shows in February. The ap- This is an evolution and the press who can sort proach ranges from the events via specific catego- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. scheduling of shows to ser- of what we have been ries, i.e. women’s or men’s WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. vicing editors and buyers wear, accessories, venue lo- COPYRIGHT ©2013 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. with better ways to organize cations or runway shows ver- VOLUME 206, NO. 123. MONDAY, DECEMBER 16, 2013. WWD (ISSN 0149–5380) is published daily (except Saturdays, doing, but in a more Sundays and holidays, with one additional issue in March, May, June, August, October and December, and two their week. sus presentations. additional issues in February, April, September and November) by Fairchild Fashion Media, which is a division of Advance “Over the past couple of The Fashion Calendar will Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: public, formal way. S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, seasons, we have been in- continue to publish its print Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, NY, volved in supporting and version and online listings and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax — STEVEN KOLB, CFDA Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West helping Fashion Calendar of shows, presentations and Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, around the schedule,” fashion week events. Harlan, IA 51593. FOR SUBSCRIPTION, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA 51593, call 866-401-7801, or email customer service at wwdPrint@cdsfulfillment. said CFDA chief executive officer Steven Kolb. As for scheduling of shows, Fashion Calendar com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service “Fashion Calendar is legendary, Ruth is iconic. and the CFDA will receive designer requests and address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within When Diane and I both started at the CFDA, we work together to confirm time slots and catch any one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever just felt that given our role and knowledge of de- clashing show times. dissatisfied 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. Address all editorial, business, and production signers, we could just be advisers and it would po- “The fashion industry and the press will cer- correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please tentially make for a better schedule. This is an evo- tainly benefit from this increased coordination and call 212-630-5656 or fax the request to 212-630-5883. For all request for reprints of articles please contact The YGS Group at [email protected], or call 800-501-9571. Visit us online at www.wwd.com. To subscribe to other lution of what we have been doing, but in a more from the sorting capability that CFDA will be pro- Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. Occasionally we make our public, formal way.” viding on its Web site,” said Finley, who started the subscriber list available to carefully screened companies that offer products and services that we believe would interest The New York Fashion Week schedule, with listing of fashion industry events in 1941. our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 6356, Harlan, IA 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR some 350 shows, can be a challenge to organize. The collaboration covers the two fashion weeks DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED Often there are two or three shows scheduled at the as well’’ as resort and pre-fall. Other event listings 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, same time, and significant designers were forced to throughout the year will continue to be handled by UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND share their time slots in the past. the Fashion Calendar. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

4 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION NEWSMAKER OF THE YEAR The Bangladeshi Apparel Worker The plight of garment workers in the nation spurred a global outcry for change. In the past 12 months, there has been an increased sense of empowerment among employees, but much still needs to be done. By Mayu Sani

AS THE 72-HOUR blockade imposed by the opposition party lifts briefly in Dhaka, 26-year-old Mina walks briskly to her factory in Tejgaon, in the central part of the Bangladeshi capital. There is an element of fear and uncertainty, and police are posted around the street, alert after days of violent protests that have included arson, attacks and deaths. Mina, who is a senior machine oper- ator in a garment factory, moved to the city to work in the industry when she was 17. For many years, she has faced long working hours. “I feel sometimes that the production pressure may be impossible to endure,” says Mina, “be- cause some days we work 12 hours, or 15 hours or more to meet it. But we are even more afraid that the factories may close down and we will be out of a job.” She is one of the 3.8 million garment workers in Bangladesh, more than 85 percent of whom are women. Mina is the face of what has become an industry black eye, and what has made the Bangladeshi worker WWD’s Newsmaker of the Year. While condi- tions had been poor and accidents had been occurring for some time, the situ- ation crystallized on April 24. Already reeling from a factory fire six months earlier that saw 112 workers perish, the global apparel industry was rocked when 1,132 workers died in the building collapse at Rana Plaza in Savar, a suburb Workers at a factory in Ashulia. of Dhaka. Efforts to find survivors went

say that they are beginning to notice a Sri Lanka ($73), Pakistan ($79), Vietnam Ogusa Mina difference on the factory floor, even if ($78) and Cambodia ($80). Until last Begum it’s only a more conciliatory tone from month, Bangladesh, at $38, was close to their employers. half of those amounts. Also, for the first time, workers and “We are really happy with this wage employers are being drawn together increase but also are still expecting as politicians clash in advance of the more to meet the situation of inflation,” Bangladesh election scheduled for Jan. said Ogusa Begum, who works at a fac- 5. Violence has increased and 72-hour tory in northern Dhaka. blockades of major cities have become Recent studies, including one by the commonplace. Reports of arson, deaths Center for Policy Dialogue in Dhaka, and violent attacks have become part of have suggested that $68 is a minimum daily life. Owners of garment factories living wage. However, many of the work- said meeting production schedules has ers support more than half a dozen peo- become their biggest challenge, includ- ple, often including their parents and ing getting completed orders to the port siblings. Employers, on the other hand, city of Chittagong. They’re losing mil- say higher wages would put them out of lions of dollars from having to send or- business and they are under too much ders by air freight. financial pressure already. “The country is facing a volatile situ- “The employers are addressing ation because of a lack of understand- safety, building issues, payment issues, ing between politicians. We want peace many things have changed,” said Mina. to do business,” said Kazi Akram Uddin There have been other small chang- Ahmed, president of the Federation of es, such as in sanitation, the addition of Bangladesh Chambers of Commerce water coolers, meal timings and agreed-

PHOTOS BY EMDAD ISLAM BITU PHOTOS BY and Industry. upon maternity leave. One of the major “We were just beginning to hope that stumbling blocks is the fact that a ma- on for weeks, and it is estimated that it Estimates of the number of garment our lives would be better,” said Mohd jority of the owners of garment factories will cost more than $70 million to com- factories in the country vary between Islam Hussein, a worker who said he are men, as are most of the supervi- pensate victims’ families and survivors. 3,500 and 4,500 and as Bangladesh has has begun to awaken to his rights and sors on the factory floors. “But we have The tragedy stirred a global outcry rapidly grown to be the second-largest those of his colleagues. “But now, we learned not to be intimidated by that,” and raised a fundamental question: What exporter of apparel in the world, many are not sure whether our factories will Begum said, “especially when we can is the human price of cheap fashion? of them have grown as well. But the na- survive another year.” speak with each other and take a stand The controversy continues to divide tion’s regulations and laws governing Amid it all, workers admit there has on what we believe is right.” the industry, with 115 mainly European working conditions, safety, the right to been progress in their working condi- She, and other workers at her fac- firms agreeing to follow one set of le- form unions and minimum wages have tions in the last six months. These in- tory, are no longer afraid to express gally enforceable working standards not kept up that pace, and complaints clude a recent agreement for a mini- themselves or to form a union. “I feel drawn up by unions and major U.S. about sweatshops, with workers in mum wage increase to 5,300 taka, or very strong now. The workers have more retailers like Wal-Mart Stores Inc. and cramped conditions and working long $68, a month, a rise of 77 percent from unity and this makes me feel very confi- Gap Inc. following another. Western hours, are rife. the existing $38 a month. The monthly dent,” she said. governments, meanwhile, are pressur- But in the last few months, change minimum wage for entry-level workers But on top of fears about potential ing Bangladesh to improve industry has been sweeping through the industry, in other major garment-exporting coun- further tragedies, workers say they have conditions. spurred by the global attention. Workers tries is much higher, such as India ($71), other worries. WWD MONDAY, DECEMBER 16, 2013 5 WWD.COM

“It’s been a year of many fears for me,” Solidarity, said garment workers in Begum said as she discussed her work as Bangladesh today still live in fear that a factory supervisor in a company that another fire might rip through a factory manufactures shirts. “But now they are or another building might collapse and very different from six months ago. kill them, despite efforts on multiple “I have seen many things since I fronts to improve safety and working moved to Dhaka from my home from conditions. But workers are also aware southern Bangladesh. I have changed of the international focus and effort to jobs from a knitwear factory, learned make their factories safer, which has how to get better at my job, but this year given them some hope and raised the our workers and our industry has re- level of awareness, she added. ally suffered,” she said, alluding to the Akter, also a former garment worker numerous fires that have killed industry who was blacklisted for trying to orga- workers — an estimated 400 people in nize workers at a factory before she fires that were unreported, according helped form the Center, said, “I think to unofficial reports, and about 128 of- workers from Tazreen and Rana Plaza ficially in the last year. The largest was ’’ are suffering from post-traumatic stress the fire in November 2012 at Tazreen syndrome….Their mind-set is that there Fashions Ltd., which claimed 113 lives, can still be an accident at any time.” with reports that the management As for the minimum wage increase, locked the gates and did not let workers Akter said labor groups were seeking leave the premises when the first fire $100 a month. alert was sent out. “The $68 rate is still a poverty wage,” Begum said her concerns about build- she said. “When workers ask for $100 and ing safety have been replaced by fears of get $68, how do they have any dignity?” countrywide anarchy given the political Akter said less than 200 factories turmoil, which could require her to move Kaplona Akter are registered to be unionized and less back to her village, and to a life that was JONAH KOCH PHOTO BY than 20 of those have collective bar- inured in poverty. “We are all scared that gaining agreements. if the shipments cannot leave the factory, the factory floor in a large garment fac- Akter said workers no longer feel as the factory owners will stop production tory in Ashulia, a suburb of Dhaka. alone in the world. and we will be out of a job,” she said. I believe worker As Farah Kabir, country director “One of the improvements is that Many of the garment workers at an of Action Aid Bangladesh, said, “It’s a there is a [newfound] level of self-aware- evening meeting said that they dream of justice starts with very mixed bag. As you follow the story ness,” she said. “Whenever these days better lives for their children, and that there has been a lot of tension. It’s they see a crack in a building or a spark their salaries are key to a better education worker safety. about how workers are being rehabili- [in a factory] they leave and say they will for them. Bangladeshi banker and econo- tated, about compensations to workers not come back until it is fixed,” crediting mist Muhammad Yunus observed that — KALPONA AKTER, who have suffered and to their fami- unions for talking to workers about their the growth of the garment industry has BANGLADESH CENTER FOR lies; it’s about ad hoc responses from right to refuse dangerous work. changed the lives of many workers. “The the government, tokenism and also real Despite what she sees as the multitude transformation process that Bangladesh WORKER SOLIDARITY progress. There has also been individu- of shortcomings on the path to reform, is going through of empowering women al and collective support for the work- Akter did not dismiss the significance of who come from villages. These women ers from all over the world. Yet, there the moment for Bangladeshi workers. move from a life of poverty to work in fac- agreeable nod by employers on the still remains a lot to be done.” “I think this is an historic turning tories, live independently in cities away surface but persecution when it comes “These garment workers are working point,” Akter said. “We are trying our from their families and find change from down to brass tacks. “We were told it is for millions of consumers and hundreds best to use this opportunity, and the rural norms. They earn their own money OK to go ahead and form a union, but of global employers. We are all affected accord is one big piece of it. I believe and gather economic strength. All of these then we came to work ’’and found a no- and we all need change,” B. Srinivasa worker justice starts with worker safety. factors have a profound impact on society tice on the door saying that the factory Reddy, director of the International They definitely have a brighter future, and cause a slow and steady change,” he would be closed for the next two days. Labor Organization Country Office for but it will be not be easy to get that — told WWD in an earlier interview. It was a complete breakdown for our Bangladesh, noted in November. and we have a long way to go.” Even as there are signs of change, workers who need their daily wages,” Kalpona Akter, executive director — WITH CONTRIBUTIONS FROM workers admit there still is often an said Abdul Rahman, a local leader on of the Bangladesh Center for Worker ARTHUR FRIEDMAN AND KRISTI ELLIS

Next month, Texworld USA is president and chief operating the retail giant’s longer-term partnering with Manufacture NY, officer of Cone Denim and commitment to buy $50 billion The American Way parent company International worth of American-made products a fashion incubator for emerging THE UNEXPECTED REVIVAL goods shipped on time, without designers, to allow attendees Textile Group. over the next 10 years. of the U.S. apparel and textile problems, the value of buying and designers the opportunity Gildan Activewear Inc. said “Due to changes in the manufacturing industry went from domestically. We’re having to source fabrics and speak with in September that it will invest equation — energy costs, rising promise to reality this year. retailers come to us looking for Manufacture NY about their more than $200 million during labor costs in Asia and expansion Call it the risk factor. While help finding the right vendors products and services. fiscal 2014 and 2015 for the of the middle class outside of the importance of diversity in to test product or balance their Over the last three years, construction and ramp-up of the U.S. that is creating demand manufacturing, along with buying production.” American textile mills, which two additional yarn-spinning outside of the U.S., [this] puts us patterns that have brought a While automation and the include U.S. operations of foreign- facilities in the southern U.S. in a unique once-in-a-generation deeper need for quick response types of goods being produced owned firms, have built 23 plants This investment will be made in opportunity to make a change and better quality, have spurred have sometimes skewed the and invested more than $3 billion addition to commitments made through investment in [U.S.] a revival of U.S. production in numbers against signs of real in new facilities and equipment, in November 2012 for a new manufacturing,” Bill Simon, the last three years, the lack of growth, a report from the United according to the National Council ring-spun yarn-manufacturing Wal-Mart’s U.S. president and hands-on control, poor factory Nations Industrial Development of Textile Organizations. Producers facility in Salisbury, N.C., and the chief executive officer, said at the conditions and labor laws in Organization this month showed have opened fiber, yarn and refurbishment and modernization Obama administration’s inaugural Bangladesh and other countries U.S. apparel production up 3.9 recycling facilities to convert of the company’s open-end SelectUSA 2013 Investment also played into the hands of percent in the third quarter textile waste to new textile uses. facilities in Clarkton, N.C., and Summit. companies touting the advantages compared to the same period a Cone Denim’s historic White Cedartown, Ga. Simon said Wal-Mart suppliers of Made in America. year earlier. Oak mill facility in Greensboro, The Montreal-based have committed to creating Jeremy Wooten, secretary- Industry veterans that thought N.C., the oldest operating company’s total investment more than 1,600 U.S. jobs and treasurer of the Seams they were witnessing the final denim mill in the U.S., installed in American yarn-spinning investing more than $100 million Association, which helps promote demise of U.S. manufacturing additional American Draper facilities, including the two new in several product categories. economic growth for American have at times been taken aback X3 looms in response to the operations, is expected to create “In categories like [soft sewn products companies, said by the revival. growing demand for Made in USA more than 700 jobs and further goods], we are starting to see the factory catastrophes in Asia Jim Andriola, sales manager selvage denim. The expansion solidify the “important domestic movement in the technology- have “sparked a conversation for Texollini, a vertically integrated will increase its production of U.S. component of its vertically driven aspects of it in textiles and that we haven’t seen in the U.S. knitting mill in Long Beach, authentic vintage selvage denim integrated manufacturing.” towels…and socks,” Simon said. in the last couple of decades.… Calif., said at the Texworld USA by 25 percent. Then there’s Wal-Mart Stores “So the things that don’t require The rising labor and energy costs trade show this summer, “I “We recognize the unique Inc., which said last month hand cut-and-sew are more near- there have made people look can’t believe I’m even having capabilities of White Oak and that three of its suppliers have term. A little more further out closer at the full value equation, conversations about the revival of the growing demand for Made committed to moving production would be hand cut-and-sewn not just the FOB cost — the U.S. manufacturing. I really never in America denim fabrics and back to the U.S., or expanding items like [apparel].” risks associated with getting the thought it was coming back.” garments,” said Ken Kunberger, existing capacity, as part of — A.F. 6 WWD MONDAY, DECEMBER 16, 2013

Richard THE YEAR IN FASHION TOP 10 STORIES Baker

be converted to Lord & Taylor. The com- pany is prepared to invest $200 million to upgrade the Saks flagship in Manhattan. Building an Empire Sources speculate that an overhaul of the main floor and converting the lower level With this year’s purchase of Saks Fifth Avenue, to selling space are possible to expand Richard Baker is becoming a retail kingpin. By David Moin cosmetics, accessories and jewelry. As Baker said last week, when the company disclosed its third-quarter re- RICHARD BAKER WANTS TO pull off a with three core expertises: one, being a sults, HBC is “in the midst of a transfor- retail hat trick. great operator; two, having strong real mational period. There is lots of work In just six-and-a-half years, Baker, estate expertise, and three, a strong core ahead of us.” the chairman and chief executive of- competency in mergers and acquisitions,” The Saks deal and the promotional en- ficer of Hudson’s Bay Co., has cobbled Baker said in a recent WWD interview. vironment took a toll on HBC’s third-quar- together a $7 billion North American re- The 48-year-old Baker is well into ter results. The loss rose to $124.2 million tail empire comprising three venerable pumping up Hudson’s Bay and Lord & in the period ended Nov. 2, compared with nameplates — Saks Fifth Avenue, Lord Taylor. He has centralized operations and a loss of $14.4 million a year ago.

& Taylor and Hudson’s Bay. leadership, and some key locations like JOHN AQUINO PHOTO BY HBC, promoting aggressively to draw They’ve all seen better days, but Baker the Hudson’s Bay flagships in Vancouver shoppers, saw total sales rising 5.8 percent is preaching a revival of all three through and Toronto, as well as Lord & Taylor than succeed. Brad Martin, for example, to $984.1 million. On a same-store basis, a complicated strategy of integrating the on Fifth Avenue in New York, have seen put together a similar retail conglom- sales at Lord & Taylor turned positive for operations and managements to save significant upgrades with renovations erate comprising regional department the first time in a year, rising 1.6 percent. money; unlocking hidden values in the and innovative in-store formats through store chains with questionable futures as Sales at Hudson’s Bay department stores real estate holdings, and remaking selling partnerships, such as with Topshop from well as Saks. Martin’s retail business ul- in Canada grew 6.4 percent. Acquisition- space through renovations, testing new London, and Black Brown 1826 men’s timately disappeared with all the pieces related finance costs and expenses, net of concepts and enticing fresher, more mod- wear designed by Joseph Abboud. getting sold off. Edward S. Lampert has tax, were listed at $123.1 million. ern labels. Expansion is also part of the He continues on the hunt for brands failed to improve business at Sears or Baker’s path to retailing certainly agenda, with stated plans to bring Saks for exclusive distribution, is aware that Kmart, and attempts to long ago revive wasn’t direct. It began when his father, Fifth Avenue full-line stores and Saks store productivity must increase and that, such nameplates as Bonwit Teller and B. Robert — who founded National Realty Off 5th outlets to Canada, and increasing in the online arena, L&T and Hudson’s Altman didn’t work. J.C. Penney’s recent & Development Corp., a large owner of Lord & Taylor’s footprint in the U.S. Bay lag the competition. He’s pushing for reinvention strategy almost destroyed shopping centers in the U.S. — talked Baker has become the hot topic of the expanded online assortments and fulfill- the company. his son out of starting a restaurant and retail industry because of his aggressive ment capabilities; “auto locate” capa- On the other hand, Macy’s is experi- into going into the real estate business buying spree; his decisive, fast-moving bilities in the stores to find items and sell encing a renaissance; J. Crew was suc- with him. That’s apparently where the management style, and because he’s sud- them faster and at better margins, and a cessfully remade, and Gap shows signs young Baker developed retail sensibili- denly become ceo of three department more robust infrastructure. of being turned around. ties, having been instrumental in bring- store chains despite having a background “Omni remains a start-up business Now all eyes are back on Baker and ing Wal-Mart to the East Coast to his in real estate and not rising through the [at Hudson’s Bay and Lord & Taylor],” Saks. The deal closed at the beginning of family’s shopping centers. retail ranks. There is a track record of Baker said last week, citing its high sales November. Baker has cleared the decks Baker left his father’s business to form developers taking over retailers then growth yet lower earnings before inter- to make way for a team that’s being a fund to acquire businesses, which led running them into the ground, and Baker est, taxes, depreciation and amortization formed, and he recruited Marigay McKee to Lord & Taylor, where he was intrigued himself has sometimes been misunder- contribution than brick-and-mortar. “We of Harrods to be president of Saks. by the valuable Fifth Avenue flagship stood. He states quite clearly that he’s “a have made tremendous progress, start- McKee has a strong reputation as an ag- real estate and that Lord & Taylor units builder of businesses” and that he’s not in ing from no online sales just a couple gressive, assertive retailer and will work in places like Scarsdale and Manhasset, the retail business to plunder it. of years ago. But we are not yet satisfied with Baker on formulating the strategy. N.Y., were like “safe havens” of shop- He has offset some of the skepti- with the level of service and with all the At Saks, additional layoffs are ex- ping for suburban women. Initially, Baker cism by surrounding himself with top sku’s [stockkeeping units] we have avail- pected as back-office operations get wanted to build an office tower atop the retail talent and utilizing consultants. able and volume levels. We are commit- consolidated into the central operations roof of the Fifth Avenue flagship and had It also helps that he didn’t1 overpay in ted to having a state-of-the-art online of- of the Toronto-based HBC. In January, plans drawn up. Instead, he switched pri- any of the deals, and that he shrewdly fering in Canada. We hope to be there in Saks’ distribution center in Maryland orities and decided to focus on building paid down debt by selling off real estate the next 12 to 15 months.” will close and operations will shift to up Lord & Taylor’s retail business. components that were outside the meat- He’s also using people from saks. the Lord & Taylor distribution center in In recent conversations, Baker has ex- and-potatoes of the retail businesses. com, which has a more mature and Wilkes-Barre, Pa. That will lead to further hibited an emerging appreciation for re- He’s not without the wherewithal to buy higher-functioning online business, to layoffs, as well as efficiencies in truck- tail, and keen interest in the nuts and bolts, another retailer, and he says he’s always help with Lord & Taylor and Hudson’s ing. McKee has been busy visiting Saks like what’s on the selling floors, where got his eyes open — though another deal Bay’s e-tail businesses. stores around the country and develop- there are merchandise opportunities, and doesn’t seem likely anytime soon, given Baker has certainly got the industry ing plans to pump up certain sites. Some the store’s private label. If you asked him the road ahead to digest Saks. taking notice of his grand mission, even openings of Saks full-line and Off 5th if he considers himself a retailer, or a mer- “From the beginning, we always had a if it’s not yet completely convinced it will outlets in Canada are seen, as are some chant, or a real estate executive, he would philosophy that you run a retail company work. Retail revivals are tough; more fail full-line closings in the U.S. Some could simply say, “I’m an entrepreneur.”

Fashion Moments of 2013 BY LAUREN MCCARTHY

Jan. 2: Marcus Wainwright and David Simon Bolivar International Airport wear, shoes, bags, accessories and ▼ Jan. 18: John Galliano makes Jan. 17: Rihanna joins the list of Neville nab a new investor for their in Maiquetía. beauty products. his return to the fashion scene, as pop stars-turned-designers with Rag & Bone label in John Howard’s Oscar de la Renta opens his studio plans to collaborate on a collection Irving Place Capital. Jan. 7: Milly designer Michelle Smith Jan. 14: Dsquared2 goes mini, to the disgraced designer for a three- with British high-street brand River pairs with Banana Republic to produce signing a five-year licensing deal for week “residency.” The collaboration Island, during London Fashion Week. Jan. 2: Stella McCartney is honored a 60-plus item collection for men Brave Kid-produced children’s wear. coincides with preparation for de by the Queen’s Honours List, being and women. This latest project, due la Renta’s fall collection. While Jan. 22: The First Lady caps off named an Officer of the Order of the in May, follows the retailer’s recent Jan. 14: Alber Elbaz teams with influences of the former Dior designer inaugural weekend in a custom Jason British Empire for services to fashion. collaborations tying into TV (“Mad Lancôme for his first makeup project, are apparent, Galliano himself would Wu gown, just as she had in 2009. Men”) and film (“Anna Karenina”). a limited-edition color cosmetics line not make any show appearance, much Jan. 2: After months of heated battle, due in mid-June. to the dismay of curious attendees Jan. 22: Chanel’s couture show, Tory Burch and ex-husband Chris Jan. 8: There’s more to Nicholas inspired by “A Midsummer Night’s Burch settle their contentious lawsuit Kirkwood than a sexy heel. He Jan. 15: PPR acquires another piece Dream,” ends on a provocative note: over the sale of his stake in Tory launches a men’s line of six styles of London’s growing fashion scene, Karl Lagerfeld sends a pair of female Burch LLC with the addition of two retailing from $520 to $950, striking a deal to acquire a 51 percent brides — led by Lagerfeld’s godson new minority investors. including a classic oxford, a desert stake in Christopher Kane. According Hudson Kroenig — down the runway. boot, a smoking slipper and a sporty to the French group, plans for the Jan. 2: Gap Inc. buys specialty retailer lace-up that borders on a sneaker. designer include opening Kane’s first Jan. 23: Oscar de la Renta opens his Intermix for $130 million in cash. freestanding boutique and adding a first London store. At 3,000 square Jan. 9: H&M steams ahead with second ready-to-wear range. feet, it’s the brand’s largest. Jan. 4: A twin-engine Britten-Norman brand diversification, announcing BN-2 Islander plane carrying Vittorio a new brand, & Other Stories, Jan. 17: Dutch designer Iris van Jan. 23: After years of showing on Missoni and four others is reported launching in the spring with seven Herpen details plans to expand the sidelines of Paris’ official couture missing by Venezuelan authorities, physical stores, as well as online. into ready-to-wear, which will calendar, Zuhair Murad is designated a eliciting a massive search effort. The The brand, which joins H&M and complement her couture designs guest member of Paris Couture Week. plane was traveling from Los Roques, COS on the Hennes & Mauritz AB favored by musicians like Lady Gaga, The Lebanese designer, whose designs off the coast of Venezuela, to the roster, will offer women’s ready-to- Björk and Grimes. have been worn by Taylor Swift, IMAGE COMPOSITE BY RYAN KIBLER, PHOTOS BY FAIRCHILD ARCHIVE FAIRCHILD PHOTOS BY KIBLER, RYAN IMAGE COMPOSITE BY WWD MONDAY, DECEMBER 16, 2013 7 WWD.COM

Beauty’s Blast: The Coty IPO The Dealmakers FULFILLING A LONG-HELD ambition, But Coty’s stock hit a low of $14.99 Coty Inc. began life as a public company on Nov. 8 after the company said that NEIMAN MARCUS AND Saks Fifth Avenue stole the takeover headlines this year, but this year. an abrupt slowdown in nail color and there was plenty of other dealmaking going on. Chief executive officer Michele fragrance took a toll on top-line sales. Luxury giants invested in brands that brought with them creative talent; private Scannavini celebrated the firm’s initial In the quarter ended Sept. 30, net rev- equity firms and other big-time investors added to their stables; strategic acquirers public offering by ringing the opening enues decreased 2.9 percent on a report- consolidated their power in certain categories, and some owners sought to unlock bell at the New York Stock Exchange ed basis to $1.18 billion compared with value though initial public offerings. on June 13, standing alongside his ex- $1.21 billion in the year-ago period. On a While not exactly a boom time, 2013 did mark the continuation of the seller’s ecutive team and designer Vera Wang, like-for-like basis, net revenues declined market, with strong and still-growing brands finding plenty of suitors and commanding whose fragrances are produced by Coty. 2.6 percent. higher multiples. Here, a look at some of the action this year. — EVAN CLARK “It was a defining moment for us,” Scannavini told Wall Street analysts said Scannavini. “We worked so hard on an earnings call that he sees the sales BIG NAMES BUYING INTO FRESH FACES: Maidenform Brands Inc. for $583 million. over the last year to get there.” weakness as “short term,” and that he LVMH Moët Hennessy Louis Vuitton took a TowerBrook Capital Partners bought True The firm’s first day of trading got off expects Coty to return to top-line growth significant minority stake in J.W. Anderson’s Religion Apparel Inc. for $824 million. Joe’s to a lukewarm start with shares clos- in line with or better than the markets fledgling business and installed the Jeans Inc. snatched up premium denim ing at $17.36, below their initial price where it competes in the second half. designer as the creative head of Loewe. The brand Hudson Jeans for $97.6 million. The of $17.50. Shares have since largely re- He cited the company’s investment in luxe giant also snapped up a majority stake Men’s Wearhouse Inc. acquired the Joseph mained in the $15 to $16 range. Investors emerging markets and a robust pipeline in shoe designer Nicholas Kirkwood, while Abboud brand for $97.5 million in cash, and of products de- rival Kering made a minority investment just last week, an affiliate of Leonard Green signed for them, in Joseph Altuzarra’s company and took a & Partners acquired Lucky Brand from Fifth including Adidas majority stake in Christopher Kane, and & Pacific Cos. Inc. for $225 million. shampoo in China made a “significant” investment in the There are usually both strategic and and fragrances signature brand of Tomas Maier, the creative cost savings reasons to cut such deals. tailored for the director of its Bottega Veneta brand. Richard A. Noll, chief executive officer Middle East, as Alexis Babeau, managing director of the of Hanesbrands, said the Maidenform well as innovation Kering Luxury division, said of the Altuzarra deal was “a great way to spend less than across key brands, deal: “By endorsing a young French- 18 months of our free cash flow” and such as Calvin American designer to help accelerate the noted that the synergies between the two Klein and Sally development of his brand, Kering fulfills its companies would help add $65 million Hansen, as upcom- mission to empower new creative talent.” worth of free cash flow annually. ing growth drivers. The IPO marked BIG MONEY EQUITY BUYS: Private equity GOING PUBLIC: Sun Capital Partners’ the end of shifting giant KKR & Co. took a 65 percent stake in Kellwood Co. division held an IPO for strategies to enter SMCP Group, which operates the Sandro, Vince, raising $200 million. Bain Capital- the public mar-

Maje and Claudie Pierlot fashion chains. owned off-pricer Burlington Stores Inc. BEN HIDER/NYSE EURONEXT PHOTO BY kets. In May 2012, Qatari-backed fund Divine Investments SA raised $226.7 million jumping into Coty executives at the New York Stock Exchange. Coty resumed bought French retailer Printemps, taking the public markets. This month, Sears work on the offer- Deutsche Bank’s 70 percent stake and Holdings Corp. said it would spin off may be taking a wait-and-see approach ing after its failed attempt to acquire the Borletti Group’s 30 percent holding, and its Lands’ End business, returning the to the company, which has seen a slow- much larger, but struggling direct seller Apax Partners took over teen retailer Rue21 sportswear outfitter to the public markets. down in top-line growth so far this year. Avon Products Inc. with a bid of $10.7 Inc. for $1.1 billion. And others are considering the plunge. For his part, Scannavini wasted no billion. The following month, it filed the Being bought by a big investor often TPG Capital and Leonard Green & Partners time mapping out a growth plan, detail- initial paperwork for an IPO with the means having some extra juice to explore are said to be weighing an offering for J. ing it in September during Coty’s first Securities and Exchange Commission. strategic options. Divine, for instance said Crew Group Inc. next year and designer earnings call as a public company. It in- But an unexpected ceo change delayed it “plans to continue the development of Marc Jacobs is thinking along the same cludes maximizing the growth potential the process, pushing it into 2013, said in- the Printemps Group both in Paris and lines, but further down the road. of its 10 power brands with “superior in- dustry sources. In July 2012, Bernd Beetz, in the rest of France, and to contribute Moncler, which closed its road show novation”; strengthening the company’s the mastermind of Coty’s current busi- to the international development of this last Wednesday, said investors’ share position in fragrance and color cosmetics ness strategy, stepped down and was suc- symbol of French fashion and luxury.” requests exceeded 14 times the number while expanding the skin- and body-care ceeded by Scannavini, who was formerly of shares offered to the public in Italy. business; growing emerging-markets to president of Coty Prestige and largely CONSOLIDATING THE MARKET: The Swatch With the shares priced at 10.20 euros account for one-third of revenues within considered Beetz’s right-hand man. Group Ltd. shelled out $1 billion, including each, or $14.07 at current exchange, five years, up from one-fourth currently; During Beetz’s tenure, the company debt, for the diamond jewelry and timepiece the total net proceeds from the offering leveraging its multidistribution strategy rounded out its portfolio by acquiring sev- division of Harry Winston. LVMH took an are 989 million euros, or $1.36 billion. to cover all price points; continuing to eral color-cosmetics and skin-care brands. 80 percent stake in Loro Piana for about Moncler’s first day of trading is set for grow margin through supply-chain pro- In recent years, it accelerated that effort, $2.6 billion. Hanesbrands Inc. bought today on the Milan Stock Exchange. ductivity, and generating sustainable and by spending $2.14 billion to buy TJoy, Dr. profitable growth through improved earn- Scheller, OPI and Philosophy. ings and capital reduction. — MOLLY PRIOR

Jennifer Lopez and Kristen Stewart, 5 front man Adam Levine reveals his Feb. 5: In the court president Robert Duffy marks his couture-certified debut with self-named scent. “I didn’t want it to battle kickoff of John reports that Customs a parade of red carpet-ready gowns. be another bulls--t celebrity fragrance Galliano vs. Dior, the and deliveries delays that I was hocking, that I didn’t believe point goes to Galliano, forced the change, not Jan. 28: Sam Edelman taps model-of- in,” justifies the “The Voice” judge. who wins the first round the impending blizzard. the-moment Kate Upton for its new of what promises to ▼ digital and print ad campaign. Feb. 1: Riccardo Tisci inks a deal be protracted labor Feb. 11: Thom Browne with Givenchy to extend his contract litigation with former stages a dramatic Jan. 30: Michael Kors teams with U.N. as its creative director. employer Christian production for his Hunger Program, which aims to help Dior Couture, as well fall collection, with solve the international hunger crisis Feb. 4: Oscar de la Renta launches his namesake house, rose-clutching models with food assistance for those in need, a line specifically for The Outnet, John Galliano. caressing bed-ridden and especially mothers and children. Kors one of three sites under the bound males — clad in will roll out a “Watch Hunger Stop” Net-a-porter umbrella. Feb. 6: Zac Posen Browne’s suits, of course. campaign, which will coincide with launches Zac Zac Posen, the release of two unisex watches, Feb. 4: Fall 2013 is officially deemed a contemporary line. Feb. 15: Coach says retailing for $295 and $325. Each the season of green by Pantone, with longtime chief Lew watch sold will feed 100 children. three shades of the color ranking Feb. 6: Marc Jacobs nabs a new Keren Craig launch Marchesa Voyage, Frankfort will hand the company in the top 10. Leading the pack gig: creative director of Diet Coke. a contemporary collection done in reins to Victor Luis, president of Jan. 31: Bargain-shopper alert: for women’s fashion, a deep lichen The designer’s turn at the brand’s partnership with LF USA. the brand’s international group, Barneys New York launches green, with nearly 16 percent of creative helm in Europe will have in January 2014. barneyswarehouse.com, allowing designers using the color. him stripping in a photo booth and Feb. 8: Despite its Disney-fied name, consumers to save up to 75 percent off posing in playful, pin-up-style ads. New York designers frantically Feb. 18: Tom Ford returns to the formal retail without ever leaving the house. Feb. 5: Adam Lippes returns to prep for Winter Storm Nemo, due fashion schedule in London with an fashion after buying back his name Feb. 7: Because even the most to hit during fashion week. Marc over-the-top collection. The inspiration Feb. 1: Despite previously bashing the from Kellwood Co. with a collection fabulous lives need clothes by day, Jacobs moves his time slot from is explained by the designer as notion of celebrity fragrances, Maroon at entry-level designer prices. Marchesa’s Georgina Chapman and Monday evening to Thursday, though “Cross Cultural Multi Ethnic.” 8 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION TOP 10 STORIES

mand at Vuitton, responsible for all product-related activities. A key talent scout within LVMH, she is said to have championed Ghesquière for the linch- pin Vuitton post. She also tapped acces- sories designer Darren Spaziani from Vuitton’s Voyage Proenza Schouler to spearhead lines of “very high-end” leather goods to com- As the brand aims to buck a slowdown in China by going more upscale, Louis Vuitton sees plement existing collections. a year of change with a new designer and new senior management. By Miles Socha Bernard Arnault signaled Vuitton’s upscale thrust early in the year, saying a focus on quality rather than quantity THE BIGGEST SHIP in luxury has a Vuitton’s new chief executive officer, ceo Bernard Arnault’s most trusted and would secure its market position amid new captain, a new second-in-command, LVMH veteran Michael Burke, previ- sure-handed deputies. slowing luxury demand in China and a a new designer — and the crew is steer- ously ceo of Bulgari and Fendi, was ap- Burke in turn tapped Delphine shift away from logo accessories. ing it toward more exclusive waters. pointed in December 2012. He had prior Arnault, Bernard Arnault’s daughter While executives made it clear the Louis Vuitton logged a dramatic 2013, experience at Vuitton in the U.S. and is and longtime deputy general manager switch in emphasis from monogram can- reaching a crescendo with its spring show considered one of LVMH chairman and at Dior, to become his second-in-com- vas to high-quality leather goods would be in October, when artistic direc- a gradual process, LVMH trumpeted that tor Marc Jacobs bowed out after its new W and Capucines handbags, front- a stellar 16-year tenure in order Bernard Delphine ed in ads by actress Michelle Williams, to focus on developing his signa- Arnault Arnault were selling briskly, albeit in limited ture fashion house and ready- quantities and not enough to compen- ing it for an initial public offer- sate for a broader slowdown. In the third ing. “This is all superpositive,” quarter, revenues in LVMH’s fashion and Jacobs said of the development. 2leather goods division slipped 3.8 percent A month later, Vuitton to 2.43 billion euros, or $3.22 billion, with named former Balenciaga de- Vuitton “slightly” signer Nicolas Ghesquière to underperform- succeed Jacobs. ing other brands The 42-year-old Frenchman’s in the business Vuitton debut in March is al- group, which in- ready billed as the hottest cludes such names show of the fall fashion sea- Michael as Fendi, Givenchy son, destined to bring buzz and Burke and Céline. excitement to the brand and to Vuitton reined Paris Fashion Week. in its global store Vuitton vowed that Nicolas rollout as part of Ghesquière would bring “a Ghesquière the upscaling strat- modern, creative vision” to its egy. Burke said the women’s collections, while the focus would be on “the qualitative devel- designer said the house repre- opment” of its retail network, with a goal sents the ultimate in “luxury, of “offering exceptional and unforgettable innovation and exploration.” experiences in each one of our stores.” Ghesquière’s arrival New flagship “maisons” in Munich and completed an overhaul in Venice, located in a historic post office top leadership at the cash- and cinema, respectively, each offer cul- cow brand of LVMH Moët tural displays and artworks to make them Hennessy Louis Vuitton — tourist attractions in their own right. analysts pegged Vuitton’s Even so-called in-store shops are de- 2012 revenues at 7.4 billion scribed as retail playgrounds. The latest, euros, or $10.2 billion at aver- which bowed at Selfridges in London age exchange, making it the last month, is a three-story town house luxury sector’s biggest brand linked with a revolving glass elevator in by sales. Vuitton accounts for a double helix and boasting its own en- roughly half of LVMH’s earn- trance on Oxford Street. ings before interest and taxes, Marc Jacobs’ final bow On the communications front, Vuitton and boasts an EBIT margin of on Vuitton’s runway... continued to unfurl high-profile adver- around 42 percent. ...and the tising, including a cinematic ad cam- spring paign featuring a striped hot-air bal- collection. loon, model Arizona Muse and music Fashion Moments of 2013 legend David Bowie. GIANNONI GIOVANNI DOMINIQUE MAÎTRE; JACOBS BY BY PETROFF/DUFOUR/GETTY IMAGES;BURKE PHOTO BY BERNARD ARNAULT

Feb. 20: Rihanna and MAC Cosmetics some feathers at the house of Valentino March 13: Condé Nast Entertainment March 21: Catherine Malandrino François-Henri Pinault, “ker” has its are headed for two firsts: the entertainer with her last-minute gown selection. makes its debut with the launch of GQ joins forces with Kohl’s, creating roots in the Brittany region of France, entering the color cosmetics realm, While Hathaway tells reporters on and Glamour channels on YouTube. a DesigNation collection for the from which his family hails, and and the brand doing a multiseason the red carpet, “I didn’t know what retailer, due out in the fall. connotes a house or home. collaboration with one celebrity. I was wearing until two hours ago,” March 15: Opening Ceremony partners Valentino apparently thought with “Spring Breakers,” Harmony March 21: Lululemon Athletica Inc. March 24: After 28 years as a couple, Feb. 20: Tod’s names otherwise, and sent out a Korine’s art-house film take on “Girls recalls its black Luon yoga pants designers Mark Badgley and James Alessandra Facchinetti press release just before the Gone Wild,” for a co-branded line deemed “too sheer.” The debacle Mischka tie the knot. as creative director. actress appeared — in Prada. of spring break essentials. Offerings would ultimately cost $67 million She is to oversee include mesh jerseys adorned with pot in lost sales and chief executive March 27: Hearst president and women’s accessories Feb. 27: After four years of leaf graphics and sweatpants toting officer Christine Day and chief chief operating officer Steve Swartz as well as expand its free drinks, flash sales and the less-than-subtle acronym “DTF” product officer Sheree Waterson is named chief executive officer of ready-to-wear division. celebrity sightings, Fashion’s across the derriere. their jobs. the media company, succeeding Night Out will take the night Frank Bennack, who will shift into

▼ Feb. 21: Michelle off in September across March 20: Saks Fifth Avenue March 21: Beyoncé hits a new role as executive vice Obama chooses a Reed the U.S. The annual event plans to revamp men’s private the beach in a bikini chairman and chairman of the Krakoff sheath for her will still be staged in select label with a new line, three for H&M’s summer executive committee. latest official portrait. international cities. subbrands and devoted campaign. The singer shops in key markets. also gave creative March 29: Diane von Furstenberg Feb. 22: Dior taps Jennifer Lawrence March 5: Barneys New York unveils input to the takes a bad fall while skiing in

for the Miss Dior bag campaign, plans to revamp two of its largest ▼ March 20: collection. Aspen, Colo., breaking her shoulder wearing the brand’s spring ready-to- Co-op units as a prelude to the The Museum of the in three places. wear and shot by Willy Vanderperre. transformation of its entire Co-op fleet. City of New York March 24: PPR rolls out a Stephen changes its April 1: Mikimoto commemorates Feb. 26: Anne Hathaway looks lovely in March 11: Lillian Cahn, who founded Burrows retrospective, name to Kering. 120 years with a high-jewelry Prada at the Academy Awards, but the the Coach Leatherware Co. with her with the designer (and According to chief collection showcasing modern twists Best Supporting Actress winner ruffles husband, dies at the age of 89. pal Iman) on hand. executive officer on its signature cultured pearls. OBAMA PHOTO BY DOUG KENNEDY; BURROWS BY ROXANNE LOWIT BURROWS BY DOUG KENNEDY; OBAMA PHOTO BY WWD MONDAY, DECEMBER 16, 2013 9 WWD.COM

Double Dipping at Burberry WHAT WAS BURBERRY thinking? In one of the year’s most unortho- Christopher Arrivals & Departures dox moves — at least to the world out- Bailey side the walls of brand headquarters The year was marked by more high-profile comings and goings and hirings and firings than in recent memory. Horseferry House — the company hand- Besides the two more dramatic industry moves — Marc Jacobs’ triumphant exit at Louis Vuitton and ed its chief creative officer, Christopher Myron “Mike” Ullman 3rd’s return to J.C. Penney (see story, page 12) — 2013 had its share of returns Bailey, the additional job of chief execu- and takeoffs. Here, some of the year’s most notable developments. — MARC KARIMZADEH tive officer, succeeding Angela Ahrendts, ■ ■ who is leaving to join Apple next year. LOST & FOUND: A Tom Ford’s Michael IT MOSS BE GOOD: The choice of having the designer fill much-panned fall 2013 fall 2013 Gould After a three-year hiatus, both roles is unusual for a publicly listed show during London collection. Kate Moss resumed her fashion and luxury firm, and especially Fashion Week, marking design collaboration one that’s in the FTSE 100. Markets TIM JENKINS PHOTO BY Tom Ford’s return with Topshop. The new were puzzled, and Burberry’s announcement sent the company’s to a formal women’s collection will launch share price down nearly 9 percent. runway show, had many in April. To the folks at Burberry, however, anointing Bailey was busi- wondering: Has he lost ness as usual. “I would never, ever, ever have considered leaving if his mojo? Not so fast. ■ COUTURE COMEBACK: I didn’t know that the company was significantly outperforming, and The designer’s hit spring After a 13-year absence, if I was not sure that Mr. Bailey was ready to take the baton,” said 2014 show dispelled Viktor & Rolf will return Ahrendts last month after Burberry reported a 32.6 percent spike in any such notions. to haute couture in Paris first-half net profits to 112.7 million pounds, or $173.6 million. “He next July. has already been overseeing half of the business. In addition to the ■ COACH DEPARTURE: Stuart Kate collections, all the store design, creative media and everything the Reed Krakoff stepped ■ DIESEL FUEL: Nicola Vevers Moss 2consumer sees has gone through his office for the last eight years.” down as president and Formichetti left his Bailey and Ahrendts were a close-knit team — the two had already executive creative director role as creative director worked together at Donna Karan in New York — and had a rare of Coach Inc., where of Thierry Mugler and professional relationship similar to that of Tom Ford and Domenico he spent 16 years and joined Diesel as its first De Sole when they were running Gucci and, later, Gucci Group. spearheaded the brand’s artistic director. When the news first broke, Burberry took pains to convince turnaround and growth. observers that Bailey’s appointment was in the cards. Stuart Vevers succeeded ■ FASHION CAROUSEL: “Christopher has always been the board’s preferred succes- him as creative director. Exiting Les Copains sor [to Ahrendts], and there was no doubt in the board’s mind after just three that Christopher is the right person to unlock the next phase of ■ GUEST GIG: Reclusive seasons, Alessandro Burberry growth. It was a very measured, thought-through plan,” Claude Montana Dell’Acqua was named resurfaced during the creative director of

said Carol Fairweather, the company’s chief financial officer. GIANNONI GIOVANNI JOHN AQUINO; FORD BY TIM JENKINS; VEVERS BY MOSS PHOTO BY While there’s no shortage of goodwill for Bailey, observers are re- fall couture shows with Rochas, where he serving judgment. “Ninety-nine times out of a hundred, if you com- three looks he designed for Eric ■ BIG HIRE: C. Douglas McMillon succeeded Marco Zanini, bine the roles of head of design and ceo, you are definitely asking for Tibusch’s collection, his first was named Wal-Mart’s ceo. He who moved to Schiaparelli trouble,” said George Wallace, chief executive officer of MHE Retail creations shown since 2002. was president and ceo of the as creative director. consultants. “But Christopher Bailey is no ordinary head of design: retailer’s international unit, and He is a highly accomplished designer with a really good commercial ■ AUF WIEDERSEHEN: For the third joined the company in 1990. At ■ PIECE OF EDUN: Edun named sense and he is capable of doing either one of those jobs. My worry is time, Jil Sander resigned from Wal-Mart International, he will be Danielle Sherman creative that it will be a superhuman task to do them both.” her namesake label for personal succeeded by David Cheesewright, director. Sharon Wauchob, who Last month, Bailey sought to answer that question in his ad- reasons. The design team is working who was president and ceo of Wal- had designed the line for six dress to analysts following the profit statement. He revealed the on the fall 2014 collection. Mart’s Europe, Middle East and seasons, exited to focus on her promotion of his longtime right-hand man, Luc Goidadin, to the Africa and Canada regions. Both own collection. new position of chief design officer, said his Burberry would ■ POLO EXPRESS: Jackwyn jobs are effective Feb. 1. have a more “distilled” structure and that he would have fewer Nemerov was named president ■ ADIEU AND BONJOUR: direct reports than his predecessor. and chief operating officer at ■ COMING HOME: A.G. Lafley Lydia Maurer, Paco Rabanne’s Wallace said it’s clear the people running Burberry are nei- Ralph Lauren Corp., succeeding returned to Procter & Gamble Co. artistic director of women’s ther crazy nor stupid. “They are aware of all the issues. And I Roger Farah, who was named as chairman and ceo, ousting Bob ready-to-wear, exited the think things will depend on what the details of Christopher’s de- executive vice chairman. McDonald after several lackluster company after a year in the role. sign involvement will be.” Wallace said the new setup will work, years marked by market-share French designer Julien Dossena “as long as he’s not slaving over the drawing board.” ■ RETAIL REDUX: Michael Gould losses in key categories. joined as creative director. Following the initial announcement, De Sole, who is now chair- said he’ll step down Feb. 1 as chief man of Tom Ford International but knows Bailey from when the executive officer after 22 years ■ FAREWELL, ANN: Ann ■ MULLING MULBERRY: Mulberry designer worked with Ford at Gucci, said he believes Bailey can leading Bloomingdale’s. President Demeulemeester exited her creative director Emma Hill play the two roles. “Christopher is terrific, and if he has strong op- and chief operating officer Tony namesake label, revealing her resigned from her position after erational and financial support around him, he can do both jobs.” Spring was named his successor. decision with a handwritten note. five years at the company. — SAMANTHA CONTI

April 3: After two years of collaboration, counterfeit law that would subject April 15: Condé Nast College of ▼ May 6: It’s faux anarchy at the Met May 9: Parsons The New School stylist Nicola Formichetti and the house buyers of fakes to fines and prison. Fashion & Design opens in London as celebrities, models and designers for Design cancels John Galliano’s of Thierry Mugler part ways. Diesel with 45 students from get into the rebel spirit for this year’s scheduled three-day master class, quickly snatches up the designer, April 10: Leonard A. Lauder, 23 countries. punk-themed Costume Institute gala. ceding to overwhelming public naming him artistic director overseeing chairman emeritus of the Estée outrage to the appointment. all aspects of brand’s design, marketing Lauder Cos., pledges to donate April 19: The Council of Fashion and communications. his world-renowned collection of Designers of America initiates a May 9: Ottavio Missoni, patriarch of cubist art — including 78 works sustainability committee aimed to one of Italy’s most famous fashion by Pablo Picasso, Georges Braque, inspire members to work in more families, dies at age 92. Juan Gris and Fernand Léger — eco-friendly ways. to New York’s Metropolitan May 17: Thieves steal $1 million Museum of Art. April 19: Michael Kors, Jay-Z and in Chopard jewels during the J. Crew executive creative officer second night of the Cannes Film April 12: Michael Kors adds color Jenna Lyons are named to the Festival, just hours after the and body care to his beauty empire. 2013 Time 100 List. premiere of Sofia Coppola’s film Working with the Estée Lauder Cos., “The Bling Ring.” the designer creates three distinct April 22: After a 13-year hiatus, collections: Sporty, Sexy and Glam. Viktor Horsting and Rolf Snoeren May 21: Aiming to become the plan to return to Paris couture leading destination for prestige April 12: Reebok drops brand calendar in July. beauty brands, Amazon launches a spokesman Rick Ross after the dedicated area for men’s grooming. release of the rapper’s controversial May 2: The CFDA and Vogue

▼ April 8: Lily Pulitzer dies at her Palm verse on “U.O.E.N.O.” The lyric partner to launch “Americans in May 23: On its conference call Beach, Fla., home at the age of 81. in question: “Put Molly all in her China,” featuring the fall runway detailing fourth-quarter results Champagne, she ain’t even know it. shows of Proenza Schouler, (which beat Wall Street estimates), April 9: New York City Councilwoman I took her home and I enjoyed that, Rag & Bone and Marchesa at the Ralph Lauren Corp. reveals a plan to

PULITZER PHOTO BY STEFAN SVEENSSON; MADONNA BY EVAN FALK EVAN SVEENSSON; MADONNA BY STEFAN PULITZER PHOTO BY Margaret Chin pushes for a new she ain’t even know it.” Dynasty City Wall Relics Park. roll out Polo stores worldwide. 10 WWD MONDAY, DECEMBER 16, 2013 WWD.COM

THE YEAR IN FASHION TOP 10 STORIES

“We plan to operate this as a business — not as a financial engineering experience,” he said. “That is not at all what we do. We MACY’S ON THE MOVE are very focused on the top line and grow- ing this company, its top line and its cash. THE MACY’S INC. RETAIL “If you take a five- to 10-year perspec- machine continues to roll on. tive, the global luxury goods market is The end result of decades of going to have some fairly robust growth consolidation — with 840 doors and our view is that where Neiman and nearly $28 billion in sales Marcus Group sits today in the market, its — Macy’s has scale on its side. positioning, the relevancy of the brand and What seems to keep the the channel of distribution to the consum- company moving forward is er, that it is well positioned to participate its ability to focus on major in that macro growth,” added Kaplan, who initiatives and keep at them is also chairman of 99 Cents Only Stores. for years, changing the tenor of Neiman’s had earlier pointed to the business. Euromonitor research in its abandoned M.O.M. (which stands for IPO filing and noted that the global lux- My Macy’s, Omnichannel and ury goods market was projected to hit MAGIC Selling) — Macy’s jargon $427 billion by 2017, up 41 percent from for its localization drive, a push to $302 billion last year. integrate its bricks with its clicks In the fiscal year ended Aug. 3, and the MAGIC sales training PHOTO BY WWD ARCHIVE PHOTO BY Neiman’s net earnings rose 16.9 percent initiative — is a mantra for Terry to $163.7 million while revenues rose J. Lundgren, chairman, president 7 percent to $4.65 billion — a return to and chief executive officer. prerecession levels. Lundgren told investors The $6 Billion Play The company, however, will have to at the Morgan Stanley Global devote more of its money to maintaining Consumer & Retail Conference Neiman Marcus has new owners — and a lot the debt its new owners used to finance last month that he doesn’t of changes in the pipeline. By Evan Clark the takeover. “get in front of an audience of In October, debt watchdog Moody’s smaller than 20 people — or Investors Service cut its credit rating larger than 20 people” without OPERATIONALLY, LITTLE appears along the same lines and filed the paper- on Neiman’s to “B3” from “B2,” noting talking about the M.O.M. to have changed at Neiman Marcus work for an IPO in June. that “the company’s debt levels will in- suite of initiatives. The efforts Group this year. The specifics on the offering — such crease to about $4.6 billion from $2.7 bil- have Macy’s better tailoring Karen Katz is still chief executive of- as price — were left blank, inviting lion.” Moody’s said a “sizable amount” of assortments for stores, ficer, carefully courting the upper crust any would-be acquirers to get moving 3Neiman’s “free cash flow will be used to fulfilling online orders directly through the retailer’s 41 namesake doors if they wanted to buy the company. It fund a mandatory cash-flow sweep to repay from 500 doors and focusing and two Bergdorf Goodman outposts. turned out to be a lively process, with its term loan” totaling $2.95 billion. on customer service. The company’s famed Christmas Book both financial and stra- To help get ahead, the As a result, the company has more than held its own in a arrived on cue and didn’t disappoint — tegic players kicking the Karen company is going to work tough consumer climate. this time around featuring a 565-horse- tires. Holt Renfrew, CVC Katz to keep top- and bottom- power Aston Martin for $344,500. and Saks Inc., which had line growth up. After the third quarter, J.P. But underneath, it’s been a year of the backing of KKR & Co., For instance, the firm Morgan analyst Matthew Boss major change for the company. Neiman’s were all said to have taken plans to invest $100 mil- called Macy’s the “best boat in finally has its feet planted firmly on the a look at the company. lion over the next three choppy waters.” ground again and is now looking hard at The prize ultimately went to five years to expand its The company’s third-quarter an omnichannel future — albeit with a to Ares Management LLC omnichannel capabilities, comparable-store sales rose 3.5 heavier debt load and new owners. and the Canada Pension developing a single mer- percent, with both the Macy’s The future of Neiman’s was one of Plan Investment Board, chandising platform across and Bloomingdale’s divisions retailing’s biggest question marks head- which in October snapped all brands and channels to seeing improvement across the ing into 2013. TPG and Warburg Pincus up Neiman’s in a $6 billion improve inventory visibility country. The comp gain for the were widely seen as anxious to cash in, deal — a price that sources and delivery. full year is expected to range eight years after taking it private in a said was far and away the Additionally, Katz has from 2 percent to 2.9 percent. $4.6 billion deal. highest bid. said there’s an opportunity Macy’s stock is up roughly 35 The betting among the investment In an interview after the deal was for the company to expand the 35-unit percent in a rising market this banking set was that the company would made public, David Kaplan, senior part- Last Call outlet business. year, beating out smaller gains be spun off in an initial public offering, ner and cohead of the private equity Other possibilities include interna- from broadline competitors such given the small number of obvious buy- group at Ares, gave a full-throated ar- tional expansion and a rollout of more as Nordstrom Inc., Target Corp. ers for a luxury chain of its size. The gument for the future of luxury depart- Cusp specialty stores for contemporary and Wal-Mart Stores Inc. — E.C. company itself seemed to be thinking ment store retailing. sportswear and accessories. Fashion Moments of 2013

May 28: Wal-Mart Stores Inc. Thom Browne for Menswear June 6: Bloomingdale’s vice for the creative direction of all pleads guilty to six misdemeanor Designer of the Year and Phillip president of fashion direction product lines and “image relevant” counts of “negligently violating” Lim for 3.1 Phillip Lim in the Stephanie Solomon retires after aspects of the women’s wear and the Clean Water Act and is fined accessories category. 29 years in the fashion office. accessories collections. $81.6 million. ▼ June 5: To mark 10 years June 6: Pharrell Williams celebrates the June 12: In an effort to encourage June 1: Gucci creative director of working together, Barneys 10th anniversary of his label, Billionaire his own running habit, Rick Owens Frida Giannini pulls in some of and Proenza Schouler’s Jack Boys Club, with hip-hop royalty Jay Z partners with Adidas for a men’s music’s biggest names, including McCollough and Lazaro Hernandez and Beyoncé on hand for the festivities. and women’s running shoe line. Beyoncé, Jennifer Lopez and offer a capsule group: “Proenza Florence and the Machine, for Schouler: First Collection.” June 6: One Direction unveils its June 12: The world’s largest Chanel a concert benefiting Chime for first fragrance, Our Moment, with store (12,600 square feet) opens

Change. The initiative, founded fruity top notes of pink grapefruit, on London’s New Bond Street. ▼ June 20: Gucci opens its first men’s by Giannini and Salma Hayek, wild berries and red currants. flagship in Europe. The 5,400-square- aims to highlight the causes June 12: The FIT Gala raises foot Milan location also includes an of justice, education and June 6: British stylist Annabel $1.2 million, drawing a guest list area for its made-to-measure program. health for women around Tollman dies. Believed to be in her including Alber Elbaz, Jessica the world. late 30s, the cause of death was Chastain, Tony Bennett, Francisco June 21: The CFDA/Vogue Fashion said to be natural causes. Costa and Karolina Kurkova. Fund stages a fashion show across

▼ June 2: Proenza Schouler’s Beijing’s Ming Dynasty City Wall Jack McCollough and Lazaro June 7: A gang of smash-and-grab June 14: Marc Jacobs unveils Marc with designs by Proenza Schouler, Hernandez take home thieves burglarizes Selfridges’ London Jacobs Beauty, a full color collection Rag & Bone and Marchesa. the CFDA Awards’ flagship — while the store is open. set to launch at Sephora in August. Womenswear June 26: Diane von Furstenberg opens Designer of the June 10: Jason Wu is named Hugo June 20: The Dock Group invests her first accessories shop, located in Year. Other big Boss’ women’s artistic director. $300,000 in Creatures of the the gallery space of DVF’s headquarters winners include The designer will be responsible Wind, taking a majority stake. in Manhattan’s Meatpacking District. PROENZA SCHOULER PHOTO BY GEORGE CHINSEE; GUCCI BY ANDREA DELBO’ GEORGE CHINSEE; GUCCI BY PROENZA SCHOULER PHOTO BY EXCLUSIVE DAILY OFFERS. SHOP NOW.

MIRANDA KERR 12 WWD MONDAY, DECEMBER 16, 2013 WWD.COM

THE YEAR IN FASHION TOP 10 STORIES

Penney for His Thoughts Trials and Tribulations Myron E. “Mike” Ullman 3rd returns THE FASHION BUSINESS CERTAINLY KEPT THE COURTS BUSY THIS YEAR. to right the ship. By Vicki M. Young HERE ARE A FEW OF THE MORE NOTABLE DEVELOPMENTS. RON JOHNSON LEFT J.C. Penney Co. a permanent ceo. Ackman also sought the TAXATION FRUSTRATION: Italy’s legal for 8 million euros, or $10.6 million, Inc. in the red, which left some investors resignation of Penney’s chairman, Thomas system was cluttered with cases of over the way it acquired its initial 17.1 blue, and now Myron E. “Mike” Ullman Engibous, who fired back, noting that alleged tax evasion by high profile luxury percent stake in Hermès International. 3rd is hoping for green. Ullman returned “under unusually diffi- fashion firms. Domenico Dolce and Italy’s Bourse watchdog Consob fined Ullman, returning to the chief executive cult circumstances” and that the company Stefano Gabbana were convicted in June the Mariella Burani Fashion Group, its officer’s perch following Johnson’s depar- had made progress. Ullman and Penney’s in their long-running tax evasion case. In former managers and leather goods ture in April, has faced an uphill battle to ultimately won the war: Ackman resigned November, they appealed, stating their unit, Antichi Pellettieri, 6.7 million turn around a retailer that lost $1 billion from the board and sold his 17.7 percent focus has been on fashion and style, not euros, ($8.7 million), for alleged stock in 2012 and saw a 25 percent drop in sales. stake in the firm. management of corporate matters. market manipulation. Walter and Ironically, Ullman was Johnson’s predeces- Ullman’s next battle was over Penney’s Members of the Marzotto family Giovanni Burani, respectively president sor, and was ousted by hedge funder and liquidity, shoring up credit lines and gain- were indicted in connection with the and chief executive officer of the group, Penney’s board member William Ackman ing the support of the vendor community. sale of Valentino Fashion Group to were sentenced to six years in jail for of Pershing Square Capital to make way In September, the company said it was private equity firm Permira in 2007, fraudulently filing bankruptcy. for Johnson in his attempt to seek change4 doing a secondary stock offering to raise with prosecutors alleging omission of But neither amount compares with for the department store chain. $932 million. That, plus cash on hand and earnings declaration and tax evasion. A the nearly $25.8 million fine for former To say that Ullman’s last eight months the undrawn portion of its credit facility at court date is set for March 21. Aéropostale Inc. chief merchandising have been turbulent is an understate- the time, allowed Penney’s to project $1.3 Roman jewelry firm Bulgari and officer Christopher Finazzo, who ment. Besides navigating an infrastruc- billion in overall liquidity at yearend. some of its key executives were was convicted on 14 counts of mail ture that was largely dismantled during Meanwhile, Wall Street remained fighting charges of fraudulent earnings fraud, one count each of wire fraud the Johnson era, Ullman had to bring concerned about Penney’s cash-burn declaration and tax evasion. and conspiracy in connection with a back some of the retailer’s private brands, rate. But last month, when Penney’s such as St. John’s Bay and Ambrielle, to posted a wider third-quarter loss — $489 MARTHA STEWART’S MUSICAL CHAIRS: re-attract Penney’s former customer and million versus $123 million a year ago In the long-running case to determine Martha — Ullman optimistically told analysts, where Martha Stewart products will end Stewart “We’ve turned the corner,” explaining up — Macy’s or J.C. Penney — the brand Myron E. that turnaround efforts were “beginning is staying at Macy’s but, under a revised “Mike” to take hold.” Improved sales trends agreement inked in October, will still head Ullman 3rd were in men’s and women’s apparel and to Penney’s for a much narrower range of fine jewelry. Sales at jcpenney.com were product categories. New York State Court up 25.3 percent in September and 10.8 Judge Jeffrey Oing is still mulling his percent in August. Further, he said the decision, and while the revised agreement company expects to deliver “positive may allay some of the issues, damages comps in the fourth quarter.” remain a key consideration. “We’re restoring initial markups nec- essary to support the return [to a] pro- THE FRENCH COURTS’ TURN: John multimillion-dollar kickback scheme motional department store strategy. The Galliano’s case against his former involving one of the retailer’s key environment, as you know, is very aggres- employers Christian Dior Couture SA and vendors. Finazzo is awaiting sentencing. sively promotional, and we must and will John Galliano SA will be heard in a labor PHOTO BY STEVE EICHNER PHOTO BY compete to win,” said Ullman. As such, court; the designer is said to be seeking BRANDS GAIN AGAINST COUNTERFEITERS: refocus on e-commerce, which had been the company has been running frequent compensation in the range of $8.3 Brands scored in their fight against pushed to the back burner in favor of promotions to make good on that promise. million for his dismissal in the wake of counterfeiters, winning an aggregate Johnson’s touted in-store shops concept. Still, Penney’s has bumps ahead. This public outbursts and anti-Semitic and of $154.4 million — but will they At WWD’s CEO Summit last October, month, it disclosed in a regulatory fil- racist rants. The case against Nicolas really collect? Tiffany won $2.2 million Ullman, who is interim ceo, said on his ing that the Securities and Exchange Ghesquière by his former employer, against a ring of Internet counterfeiters, return that he had to quickly draw up a Commission is taking a close look at Kering-owned Balenciaga, involves an Coach was awarded $8 million against list of 30 things that needed fixing. “Two- its September stock offering. And un- alleged violation of their separation a customs brokerage firm, and Gucci thirds of those things have been fixed,” certainty remains regarding Martha agreement, with Balenciaga claiming America Inc. won a hefty $144.2 Ullman reported. Stewart products in the legal battle with the designer made remarks that were million against several organizations That might have been the easy part. Macy’s Inc. Under a modified agreement, published in a magazine that the house engaged in online counterfeiting. But Beyond the fight for survival, an inter- Penney’s will sell a narrower range of deemed harmful. particularly in the Gucci case, many of necine war began in August when Ackman Stewart goods, and also sold its 11 mil- the defendants were labeled as “John disclosed publicly that the retailer hadn’t lion shares in Martha Stewart Living FINES AND SUCH: In one of the largest Doe” — meaning their names are not acted fast enough to replace Ullman with Omnimedia Inc. back to MSLO. fines ever imposed by France’s stock known. So while Gucci won the fight, market regulator AMF, LVMH Moët it is unlikely to collect a significant Hennessy Louis Vuitton was sanctioned amount of the award. — V.M.Y

Fashion Moments of 2013 HANDSCHUH/POOL VIA BLOOMBERG DAVID PHOTO BY ▼ July 1: Christian Lacroix shows an cosmetics safety requirements, July 12: Michael Kors July 22: ▼ July 29: Lady Gaga returns Elsa Schiaparelli homage collection including the introduction of sues Costco, claiming the The Duke with a new single, “Applause,” during the fall couture season. “responsible persons,” who will be wholesale club falsely and Duchess with the theatrical cover, shot listed with contact information on advertised that it sold of Cambridge by Inez van Lamsweerde and July 2: Former Tiffany & Co. all cosmetic product labels. Kors handbags in e-mail welcome Vinoodh Matadin, making its executive Ingrid Lederhaas-Okun is blasts sent out in April in their first debut in WWD. arrested for stealing $1.3 million July 10: L’Wren Scott teams with advance of Mother’s Day. child, George worth of jewelry from the company. Banana Republic for a 50-piece holiday Alexander collection, due out in early December. July 15: Tom Ford plans MICHAEL MIDDLETON PHOTO BY Louis, who is July 8: Kanye West teams with flagships in Chicago and Dallas, third in line to the British throne. A.P.C. on a capsule collection, July 10: Fifty-four years after the making a total of five U.S. stores. including a $120 white T-shirt. House of Dior made its first trip July 24: The era of Barneys Co-Op to the Soviet Union on June 10, July 16: Nineties wunderkind Victor comes to an end, with all existing July 8: Bill, Hillary and Chelsea 1959, the brand returns for a Alfaro returns to the fashion arena Co-Ops to be re-branded as smaller Clinton are among guests honoring runway show in Red Square. with a designer-priced line of shoes, Barneys New York units. Oscar de la Renta at the opening of bags and clothes. “Oscar de la Renta: American Icon” July 11: Jay Z performs his new single, July 23: Ralph Lauren is set to at the William J. Clinton Presidential “Picasso Baby,” for six hours in Chelsea’s July 21: Former Valentino chairman help restore the Ecole Des Beaux- Center in Little Rock, Ark. Pace Gallery, drawing an eclectic Matteo Marzotto, his sister Diamante Arts, kicking off the two-year crowd including Marina Abramovic, and three others, are indicted commitment with a runway show July 9: Joseph Altuzarra wins the U.S. Cynthia Rowley and Judd Apatow. for alleged omission of earnings on Oct. 8 Woolmark Award and will represent the declaration and tax evasion. July 29: Swarovski ventures into U.S. for the 2013-2014 International July 12: Juicy Couture founders July 25: Hudson Yards garners the the film production business, with Woolmark Prize in February. Pamela Skaist-Levy and Gela Nash- July 22: Cameron Diaz becomes support of Diane von Furstenberg a remake of “Romeo and Juliet” Taylor reach out to private equity the latest actress-turned-designer, and the CFDA for its push to be the starring Douglas Booth and Hailee July 10: New European Union firms to help take back the label taking on the role of artistic next home for fashion week when it Steinfeld in the title roles, set for legislation ushers in more stringent from Fifth & Pacific Cos. Inc. director at Pour La Victoire. is completed in a few years. October release.

14 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION TOP 10 STORIES Prêt-à- LAST WEEK, IN the midst of pre-fall being shown in all of its commercially savvy glory, Karl Lagerfeld staged a gleefully splashy ex- travaganza in Dallas centered around Chanel’s ultraluxe Métiers d’Art collection. The juxtapo- sition — couture craftsmanship reinterpreted for ready-to-wear and dropped into the middle of “pre-” — made unintended sense. The ongo- ing attention to and importance of pre-collec- tions has emboldened many designers to flex their design muscles more demonstratively than ever for their major runway collections. The result is the emergence of a subcatego- ry of runway collections that are increasingly labor-intensive, experimental, expensive and often, destined for limited distribution. Call it prêt-à-couture. That’s not to say this intensely wrought prêt- à-couture homes in on real haute, nor that the pre-seasons are creatively bereft; many are very well and interestingly designed. But there’s no question that as the “pre’s” have flourished, the runway has become increasing- ly ornamental and often, more luxurious — to the point that by comparison, more straightfor- ward runway collections can look, well, blah. Among spring’s obvious examples: Miuccia Prada’s audacious, bejeweled portraiture; Karl Lagerfeld’s intricately crafted tweeds for Chanel; Marc Jacobs’ showgirl regalia for Vuitton and embroidered Victoriana for his signature collection; Proenza Schouler’s flam- boyant textures; Riccardo Tisci’s sequined pleats for Givenchy; Alber Elbaz’s high shine for Lanvin; Sarah Burton’s regal she-warriors 5for Alexander McQueen. And it’s not just those designers positioned at the height of luxury who traffic in intense design. Alexander Wang turned laser-cut renderings of his logo into a major de- sign element of his feisty cool-girl show. Much of the focus is on fabric development. Lagerfeld noted that Chanel’s paint-swatch print would have been impossible to make only a few years ago because the technology wasn’t up to it. “Now, the prints have 150 colors. Before, it was FOR MORE IMAGES, SEE difficult to make more than 12,” he said. Conversely, in advance of his show at the WWD.com/ Musée des Beaux Arts, Dries Van Noten re- fashion-news. produced some of the museum’s 19th-century jacquards. “We went really far, to push man- Prada, spring 2014 ufacturers to make the textiles as close to the original stuff as possible,” he explained. Fashion Moments of 2013

Aug. 1: American Apparel purchases Aug. 9: Marc Jacobs makes a major passionate foodie and talking head locations in Los Angeles and New attend a manufacturing New York-based specialty retailer statement about beauty with his first unveils plans for a namesake apparel York in 2014 — the denim brand’s summit hosted by Wal-Mart and Oak, whose founders, Louis Terline store dedicated to the category. and footwear collection for HSN. first stand-alone stores. the NRF aimed to boost Made and Jeff Madalena, will remain at the in USA products. creative and operational helm. Aug. 12: Naeem Khan and former Aug. 20: Hermès makes a U.S. push, Aug. 21: J.C. Penney and Joe Fresh creative director Lionel Geneste reach with the brand’s Beverly Hills flagship fete their collaboration with a Times Aug. 25: The MTV Video Music Aug. 2: Reed Krakoff purchases his a settlement over a contact breach, opening in September — the first of Square takeover, complete with a Awards take Brooklyn, where Miley namesake business from Coach Inc. with Geneste set to receive $125,000. three major retail projects Stateside. fresh orange grove. Cyrus infamously twerks her way to for a sawbuck — yes, $10 — and the front-page of newspapers and will also assume debts tied to the Aug. 15: Pilar Guzmán becomes editor Aug. 20: Sorry, Karlie. Rather than go Aug. 23: The second quarter finally Web sites worldwide. business and issue Coach a piece of in chief at Condé Nast Traveler. Klara the typical model route, Diesel takes found a silver lining in Gap Inc., “membership interest” in the firm. Glowczewska had the job since 2005. to Tumblr to cast its ad campaign. which topped sales estimates and Aug. 27: Nordstrom steps up its The theme of Nicola Formichetti’s projected some pep in the back half. rollout of Topshop. It will add 28 Aug. 6: Bluestar Alliance LLC Aug. 16: Alexa Chung is one busy first campaign as artistic director of Topshop women’s departments and ▼ enters a definitive agreement to “It” girl: She signs a deal with Eyeko Diesel is “reboot.” Aug. 23: Tory Burch eight Topman men’s departments, acquire the Catherine Malandrino cosmetics, piling on to her upcoming details her vision to bringing the total number of brand and intellectual property book and a contributing editorship at Aug. 20: Valentino has a new move into the beauty Nordstrom stores with Topshop and assets from Tahari ASL LLC for British Vogue. home at 821 Madison Avenue area, with a new Topman to 42 and 18, respectively. an undisclosed sum. — a four-story town house fragrance, capsule Aug. 19: Nasty Gal is growing up. The between East 68th and color cosmetics Aug. 28: H&M says it will open its Aug. 7: Michael Kors Holdings Ltd. company launches its own line of East 69th Streets. collection and a bath largest store — 63,000 square feet keeps rolling with an 82.1 percent footwear, Shoe Cult, and is also eyeing and body line. — in Herald Center in fall 2014. increase in first-quarter profits. intimates and swimwear for next year. Aug. 20: Fast Retailing’s The new four-level flagship will It forecasts a 15 to 20 percent acquisition of J Brand Aug. 23: An audience usurp the title of biggest H&M in comparable-store sales gain in the Aug. 19: Hal Rubenstein’s next act? is bearing fruit with of 1,500 suppliers, the world from its 57,000 square- second quarter and a 20 percent Fashion designer, of course. The a more detailed retailers, governors foot sibling on Fifth Avenue and

increase for the full year. writer, magazine editor, author, strategy to open and business leaders 48th Street. GEORGE CHINSEE PHOTO BY TORY BURCH WWD MONDAY, DECEMBER 16, 2013 15 WWD.COM

“Which is not so easy because modern machines cannot always do what machines of that time More than ever, the ready-to-wear could do.” runway has become the place to push Fabric work aside, many designers strive to innovate with silhouette, cut and details, while fashion’s limits. By Bridget Foley still making the clothes viable in an increasingly Couture casual world. At Calvin Klein, Francisco Costa turned multiple vintage movie posters into prints and crafted them into coats with a dis- tinctly artisanal hand. Costa maintained that in current fashion’s densely populated high-end arena, simple chic — as in real simple — just won’t do. “You have to do commercial but you also have to excite,” he said. “In the past in America, there were eight designers who were relevant. Now you have 85 designers who are relevant. You have to work really hard and push yourself.” Costa said trying to replicate the genuine minimalism on which Calvin Klein cemented his place in fashion wouldn’t work today. “You look at Calvin and his message, which is so perfectly strong, but how can I bring that to today?...It’s a little more challenging to be competitive in this marketplace, because there is so much product.” Costa added that his spring collection “was not the most easy clothes. But the intent was to create the excitement and show what the house stands for, and that it’s open for ideas.” Proenza’s designing duo welcomes the chance to push creatively; their shows have become a high- light of every New York season. “We don’t like to buy fabrics right off the header,” said Jack McCollough. “We like to create things that have never existed be- fore. The runway shows seem like a platform for us to do that, whereas the pre-fall collections are deliv- ered earlier, so it makes more sense for them to be more commercial, better priced.” They see a major downside to that divide, and suggest that with the benefit of a similarly long selling season, the more creative runway clothes would have stronger sell-throughs. “The runway clothes are delivered late and the sell points are kind of crappy because they’re delivered late and because retailers spend most of their dollars on [the pre-seasons],” Lazaro Hernandez said. “So, OK, this means nothing? Great! We can really experiment. And it can be our couture, because a commercial weight isn’t on our shoulders. But…” “We don’t want them to just be show clothes,” McCollough said. “We want them to be special piec- es but things you can incorporate into your life. We don’t see it as so black and white. It would be nice if they had more of a longer life [at retail].” Calvin Klein To that end, the designers are thinking se- Collection, Givenchy, Proenza Schouler, riously about alternatives to the current sea- spring 2014 spring 2014 spring 2014 sonal calendar. Might there be a 2014 top story

PHOTOS BY DAVIDE MAESTRI, STEVE EICHNER, GIOVANNI GIANNONI AND KYLE ERICKSEN GIANNONI AND KYLE GIOVANNI MAESTRI, STEVE EICHNER, DAVIDE PHOTOS BY in the making?

Aug. 28: Authorities seize $5.1 Sept. 5: Peter Som links with Sept. 8: Lady Gaga performs songs Sept. 11: As if the 90+ degree Sept. 13: Shoe fanatic Carrie million in counterfeit goods with two Kohl’s for the retailer’s DesigNation from her upcoming album at V temperatures in New York aren’t Bradshaw’s alter ego, Sarah Jessica separate operations in New Jersey series. The designer’s line of Magazine’s fashion week fete. Her making things hot enough, several Parker, unveils her own shoe line, and Los Angeles. St. Barth’s-inspired pieces will typical costume theatrics are literally editors find themselves stuck in very purchased exclusively by Nordstrom. arrive next spring. on the smaller side, as she dons only close quarters after Philosophy’s Aug. 28: Billabong posts a $776 million a seashell bra and matching thong. show when the venue’s freight Sept. 13: Stephanie Solomon is named fiscal-year loss. The surfwear maker’s Sept. 5: BFFs Gwyneth Paltrow and elevator stalls between floors. fashion director at Lord & Taylor. core brand is now valued at zero — and Stella McCartney join forces to Sept. 10: Tiffany & Co. names Passengers including Suzy Menkes The former vice president of fashion its board is forced to consider a last- design a capsule collection of luxe Francesca Amfitheatrof as design and Lucky’s Eva Chen eventually direction at Bloomingdale’s, who minute alternative refinancing deal. basics for the actress’ site, Goop. director. The British jewelry designer climb out on ladders. retired on June 7, says she missed will oversee a team of 23 fashion’s excitement and challenges. Aug. 29: Say Hermès? Or Homies? and report to executive vice Sept. 11: Contemporary label Puns get popular with street style’s new president Jon King. Gryphon, founded in 2006 by Aimee Sept. 16: Net-a-porter Group’s The obsession — T-shirts, beanies and more Cho and Andrew Rosen, shutters. Netbook social network launches. ▼ depicting clever parodies of luxury labels. Sept. 10: Opening Users share favorite products from Ceremony stages its first Sept. 12: Francisco Costa marks the luxury e-tailer via a mobile app. Sept. 4: Kim Kardashian nabs a high- runway show with a “Fast 10 years at the creative helm fashion cover with CR Fashion Book. and the Furious”-inspired of Calvin Klein Collection with Sept. 25: An Azzedine Alaïa The image of the reality star late in her car chase, and a star-filled a fashion week-capping bash, retrospective opens in Paris. Curated pregnancy was shot by Karl Lagerfeld front row that includes featuring a special performance by Olivier Saillard, it showcases about and art directed by Riccardo Tisci. Justin Bieber and Rihanna. by Pharrell Williams. 80 dresses amid the 19th-century splendor of the Galliera Palace. Sept. 4: Mayor Michael R. Bloomberg Sept. 10: Donna Karan Sept. 12: Staying on brand, Twitter proclaims Sept. 4 as “Elie Tahari fetes the 25th anniversary announces its initial public offering Sept. 30: The Made in France label gets Day” in New York, marking the of DKNY with a youthful via a tweet, revealing it has filed a a boost, as President François Hollande Manhattan-based designer’s 40th runway show featuring confidential S-1 with the Securities unveils a 10-year plan that aims to

OPENING CEREMONY PHOTO BY JOHN AQUINO OPENING CEREMONY PHOTO BY anniversary in business. singer Rita Ora. and Exchange Commission. restore pride to the ailing industry. 16 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION TOP 10 STORIES The Hedi Debate The designer kept Saint Laurent in the news. By Joelle Diderich

IT’S ONE OF the buzziest comebacks in years. Observers were not all that surprised — after all, In the year since he took over as creative director Slimane has a steel grip on the image of the brand he of Yves Saint Laurent, Hedi Slimane has proved that has redubbed Saint Laurent, from photographing the his influence on fashion remains as pervasive as ever, campaigns to vetting the press discount list. To some, with his grunge-derived sophomore collection for the his atypical profile means he can set his own rules. brand spawning a thousand high-street imitations and “While he comes across as a slightly dictatorial cre- countless fashion editorials. ative director, Slimane has a lot of strings to his bow, The designer has also proved wrong anyone who which you can’t take away from him. He has a brand vi- read his departure from Dior Homme in 2007 as sig- sion that is far more global than a simple product,” noted naling the demise of the all-powerful creative director. Nathalie Rozborski, fashion and beauty consulting man- In a management reshuffle in July that saw YSL ager at Paris-based trend consultancy Nelly Rodi. chief executive officer Paul Deneve succeeded by His fashion shows have been very divisive — his former Bottega Veneta executive director Francesca critics argue his designs are too literally derivative for Bellettini, Kering expanded Slimane’s already exten- the runway. But Slimane’s revamp of Saint Laurent is sive role to give him the authority to “supervise all bearing fruit. The label logged a 7.2 percent increase strategic projects for the brand.” in revenues in the third quarter, with the ready-to- wear category vaulting 41 percent. Tancrède de Lalun, general merchandise manager of women’s and men’s apparel at Printemps in Paris, said Slimane came in with a “radical” new image at just the right time, and made sure all the elements of his presentation were consistent. “He took the punk and grunge aesthetic and gave it his own spin, which made it easy for the likes of H&M, 6Zara and contemporary brands to rapidly follow suit and make it accessible for customers in every price bracket,” he noted. Hedi Slimane

“You have to differentiate between the reaction OF YVES SAINT LAURENT VIA GETTY IMAGES PHOTO COURTESY of fashion editors and international buyers — people within the business — and the reaction of the public of reaching 1 billion euros, or $1.3 billion at current at large. For the ordinary consumer, it’s a new way of exchange, in sales before the end of this decade, ac- dressing and they obviously don’t see it as pastiche,” cording to industry sources. YSL revenues in 2012 to- de Lalun added. taled 473 million euros, or $608.2 million at average Rozborski said that while Slimane’s influence is exchange. (Christian Dior Couture said sales for the most keenly felt in the mass and middle-market seg- fashion house rose 24 percent between Jan. 1 and Dec. ments, griping that his creations lack the luxe factor 31, 2012, to 1.24 billion euros, or $1.59 billion. Privately of rivals like Chanel is missing the point. held Chanel doesn’t release figures, but its 2012 annual “Quite honestly, I think it’s a debate that only con- revenues, including fashion, leather, beauty, accesso- cerns the elite of the industry — and it’s a fairly ster- ries, fine jewelry and watches, were estimated at about ile debate,” she said. 6.8 billion euros, or $8.8 billion.) “What really matters is focusing on customers, “To me, this new spin on the Saint Laurent brand is their desires, their choices. The most important thing quite far removed from the original values of the brand, is to understand your audience, given that these cus- and I think it would be interesting to gradually move clos- tomers are clearly extremely savvy, have access to a er to the original DNA of Saint Laurent,” said Rozborski. stack of information and increasingly fail to draw a De Lalun said the next three seasons would be key. line between luxury and the rest,” Rozborski added. “Either he continues to do the same thing, and peo- The question is where Slimane takes the brand next. ple are going to get tired of it, because it will no lon- Spring Fall 2013 Given YSL’s ambitions to rival the likes of Chanel ger be new,” he said, “or he will renew and enrich his

PHOTOS BY GIOVANNI GIANNONI GIOVANNI PHOTOS BY and Dior in size and cachet, it has set an interim goal product lineup, in which case he will be there to stay.” Fashion Moments of 2013

Oct. 2: Saint Laurent severs ties with Oct. 7: Versace confirms it will Oct. 15: Lacoste takes over for Oct. 28: Groundbreaking Jessica Biel and others at French specialty retailer Colette for team with M.I.A., who will create a Adidas as the official outfitter for fashion photographer the MoMA Film Benefit. carrying parody T-shirts that proclaim capsule collection for Versus. France at February’s Olympic and Deborah Turbeville “Ain’t Laurent Without Yves.” Sarah Paralympic Games in Russia. dies at age 81. Nov. 7: Giancarlo Giammetti Andelman, Colette’s creative director Oct. 10: Mark Ecko, cofounder of the hits New York for a

and daughter of store founder Ecko brands, who sold his stake in them Oct. 23: New York passes a ▼ Nov. 1: Ashley and whirlwind tour promoting Colette Rousseau, cries foul, saying to Iconix Brand Group in 2009, reclaims child labor law that will afford Mary-Kate Olsen enter his first book, “Private: multibrand retailers should be the helm of Mark Ecko Cut & Sew. underage models the same the fragrance game with Giancarlo Giammetti.” free to select their assortments. protections as all other child two scents under their Oct. 10: Band of Outsiders opens its performers. Elizabeth and James label. Nov. 11: Dao-Yi Chow and PHOTO BY STEVE EICHNER PHOTO BY Oct. 3: Lifetime TV’s original movie first Tokyo store. It reveals a week Maxwell Osborne of Public “House of Versace” rankles the fashion later that it will open its first U.S. Oct. 24: A new era for downtown Nov. 4: Oscar de la Renta returns to School win the 2013 CFDA/Vogue house, which issues a statement store at 70 Wooster Street in New Manhattan starts to take shape Bloomingdale’s with a 1,000-square- Fashion Fund. saying, “Versace has neither authorized York in the spring. with the unveiling of the foot space, marking the first time nor had any involvement whatsoever in West Concourse of the World in more than 20 years that the Nov. 14: Isabel Marant’s collection the forthcoming TV movie about Oct. 11: David and Sybil Yurman Trade Center. designer’s ready-to-wear is available for H&M launches, as devotees Mrs. Versace…the movie should promote their son, Evan Yurman, to at the 59th Street flagship. brace freezing temperatures waiting only be seen as a work of fiction.” chief design director of the family’s Oct. 24: Mayor Michael R. in line to buy it. Meanwhile, “little jewelry house. Bloomberg proclaims “Giorgio Nov. 5: Westfield Garden State Plaza monsters” camp outside the new Oct. 4: Barneys New York makes a Armani Day” in honor of the in Paramus, N.J., remains closed H&M in Times Square for 30 hours bold beauty statement by unveiling Oct. 11: After more than 20 years in designer’s longtime relationship after a shooting incident that leading up to the store’s opening, renovations of its cosmetics and fragrance costume jewelry, Alexis Bittar enters with the city and his “One Night leaves the lone gunman dead of with Lady Gaga playing emcee. floors simultaneously at its Madison the fine jewelry market. Only” bash at the SuperPier. a self-inflicted wound. Avenue flagship and Beverly Hills store. Nov. 14: In a bid to capture a greater Oct. 14: InStyle poaches from The New Oct. 25: Jil Sander makes another Nov. 5: Tilda Swinton celebrates share of Chinese luxury consumers, Oct. 7: Proenza Schouler opens a York Times, naming Eric Wilson as the exit, leaving her namesake brand for her birthday with Karl Lagerfeld, Valentino hosts a full-scale runway 2,500-square-foot flagship in SoHo. magazine’s fashion news director. a third time. Ralph Fiennes, David Bowie, show in Shanghai. WWD MONDAY, DECEMBER 16, 2013 17 WWD.COM

cent of overall domestic mobile Then there’s the photo commerce it already commands. and video sharing platform The company declines to reveal Instagram, cofounded by Kevin specific figures for the Amazon Systrom, which in just three All Tech, Fashion business, but estimates years boasts more than 150 sales at about $95 billion. million monthly active users Last month, the e-tailer also and more than 55 million pho- introduced its Luxury Beauty tos shared to the service each Store, launching with 24 brands day. The fashion industry has including Nars, Stila, Ahava, flocked to the app — as the vi- All the Time StriVectin, Burberry fragrances, sual nature of Instagram lends L’Occitane and Sabon. Amazon’s itself to brands like Topshop, We’re all connected. By Rachel Strugatz entry into the prestige beauty Michael Kors, Burberry and category means it has committed Forever 21 reaching millions of THE INTERNET NEVER shuts they are recognized, re- to selling products at retail price followers every month. off — and always-on, always- gardless of which chan- — the same way a department or Acquired by Facebook for connected users are shopping nel they interact on,” specialty store would — and not about $1 billion in April 2012 via e-commerce, engaging Geisinger said. going below the prices charged — a month before Facebook’s with brands online, active on Tony King, founder by traditional retailers. IPO — Instagram introduced a plethora of social platforms of digital agency King Amazon also launched a deal video on June 20. It saw 5 mil- (including Facebook, Twitter, & Partners, said he with the U.S. Postal Service — lion uploads in the first 24 Instagram, Pinterest, Tumblr couldn’t think of a single which the weekend of Nov. 9 hours, and also the first signifi- and Snapchat) and interact- brand executing an om- started delivering online orders cant update since its launch. ing with search and e-mail or nichannel strategy effec- 7on Sunday to Amazon Prime In July, the app took this a step display advertising. tively, especially when it members in Los Angeles and further, unveiling a functional- Some of the year’s big- comes to luxury labels. New York City. ity that allows users to embed gest stories include the Since so few have photo and video content on ad- buzzword “omnichannel,” cracked the code when SOCIAL MEDIA ditional channels like company online behemoth Amazon it comes to omnichan- Twitter’s highly-anticipated ini- Web sites, fashion blogs or any delving deeper into the nel thus far, perhaps a tial public offering was revealed other channels where HTML fashion space and social more attainable goal — via tweet, of course — over is embeddable. In October, media giant Twitter going Retailers and brands are in constant contact for brands is achiev- the summer, and although the Instagram said it would start public, as well as Facebook- with consumers through myriad devices. ing a “cross-channel” company has yet to figure out to feature advertising. The owned Instagram getting into Bornstein, chief marketing approach. At least that’s what the profit side of the business, company said in a blog post video and advertising. and digital officer of Sephora Federico Barbieri, Kering se- the microblogging site saw a Oct. 2 that over the following Americas. Whether consumers nior vice president of e-busi- OMNICHANNEL are shopping in-store, online or ness, believes. He is keen on Companies are realizing more on Sephora’s app, they’re able building synergies between the than ever that in order to suc- to access the same information offline and online channels. ceed at retail, they must be via every channel. They also “Omnichannel means hitting present on all channels to have access to past purchases, all of the touch points; [it’s] much serve a more informed consum- and all data is stored, mean- broader than cross-channel, and er. The irony is that hardly any ing a customer can walk into a involves many more functions. retailers have yet executed im- store and be able to see which Being practical, we’re focusing pactful omnichannel strategies. shade of lipstick or foundation on cross-channel,” Barbieri said. While it is widely acknowl- she bought last time. edged by experts that the term David Geisinger, head of re- AMAZON CONTINUES TO DOMINATE is overused, a handful of brands tail business strategy at eBay Amazon, the e-tail giant Jeff have begun to execute retail Inc., said companies need to Bezos founded in 1994, has Amazon’s fashion business is estimated at $95 billion. experiences that hit all touch start thinking of it differently. expanded its fashion foot- blockbuster first day of trading months, users in the U.S. would points, including Sephora, Rather than looking at digital print significantly this year. In on Nov. 7. Twitter shares were see an “occasional ad” in their Coach, Macy’s, Burberry, Gap and strategies strictly in terms of October, the company opened priced at $26 the day before the feeds. The blog explained that it Armani, said Maureen Mullen, “omnichannel,” organizations a 40,000-square-foot space in IPO, but after the first day of would “start slow,” illustrating director of research and advisory have to embrace a notion of con- Brooklyn’s Williamsburg sec- trading closed at $44.90 — 72.7 that the company’s mission is at New York University Think sumer engagement that goes in tion, serving as a photography percent, or $18.90, above the to make ads feel “as natural to Tank Luxury Lab, or L2. tandem with commerce. He calls studio for Amazon Fashion, initial offering price. More than Instagram as the photos and vid- Sephora integrated om- this “experiential commerce.” which also owns Shopbop and 117 million shares traded hands, eos many of you already enjoy nichannel programs in 2007 “We should stop using the MyHabit. Amazon says that fash- and Twitter ended with a market from your favorite brands.” with the inception of its Beauty word ‘omnichannel’ and start ion is its most rapidly growing capitalization of $24.46 billion. The first Instagram ad ap- Insider loyalty program, which using the word ‘commerce.’ business — and with the new As of Friday, Twitter closed at peared on Nov. 1 on Michael today boasts tens of millions of Consumers are looking for a con- studio, the company might soon $59, with a market capitalization Kors’ page and has already gar- members, according to Julie sistent, unified experience where surpass the more-than-33 per- of $32.76 billion. nered nearly 230,000 likes.

“La maison au bord de l’eau,” or Michel Meynard “the house by the shore,” a 1934 Ottavio Missoni beach house never before built, Vittorio Missoni designed by the late pioneering IN MEMORIAM Thomas Moran French architect Charlotte Perriand. Manuel Mota The following people from the worlds of fashion, retail, Murray Pearlstein ▼ Dec. 6: Leonardo DiCaprio wears beauty and media died this year. Sheldon Pinnell Giorgio Armani circa 1993 in his Gérard Pipart forthcoming film, “The Wolf of Wall Lilly Pulitzer Street,” directed by Martin Scorsese. Andreé Putman Kate Barry Dauphine de Jerphanion Morio Ikeda Susan M. Rafaj Nov. 20: Alexander Wang reveals his ▼ Dec. 12: Karl Lagerfeld does Jerry Bernstein Max Delorme Wojtek Inglot Willy Rizzo retail vision for Balenciaga with the Dallas in a Texas-sized way, staging Werner Bieri Arnold Dunn Peter J. Jurutka Ted Ronick debut of the brand’s Mercer Street store. Chanel’s Métiers d’Art show at the Morton Brownstein Dunnan Edell Peter W. Kaplan Jean-Louis Scherrer city’s massive Fair Park. Matthew Bucksbaum Pierre Fabre Marvin Klapper Alan Schwartz Nov. 22: Coach James Butterfield Joseph P. Famolare Kenneth Kolker Raymond Sessa reopens its Fifth Lillian Cahn Alfred Fiandaca Hemansu Kotecha Amy Stevens Avenue flagship with Albert Capraro William Henry Mary Krug Robert R. Taylor a new retail concept, John Casablancas FitzMaurice 3rd Myron Kunin Chip Tolbert marking the first step Robert J. Cassou Harold Frank Neal Lee Sylvan Tobin in a multitier plan to Talia Castellano Robert Friedman Dominique Loiseau Annabel Tollman elevate the brand’s Georg W. Claussen Joachim Gabor Giovanni Coffen James Tuman 3rd retail experience. David Collins Martin Gershik Marcolin Deborah Turbeville Aldo Coppola Sheldon Gitman Lawrence E. Marcus Marcus von Ackermann Dec. 3: As part of the Piero Cristaldi Andrew S. Gordon Bernard “Barney” Marks Esther Williams Design Miami fair, James Daugherty Barbara W. Guzy Larry Martin Jules Winarick Louis Vuitton erects Douglas J. Dayton S. Miller Harris Melvin T. Matsui Paul Woolard PHOTO BY STÉPHANE FÉUGÈRE PHOTO BY Hortensia de Hutten John W. Iason Rosalía Mera Kazuyuki Yamamuro 18 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION TOP 10 STORIES

11.12.13 february 2014 A Rusty Recovery portello fieramilanocity Big swings in consumer confidence, job growth and consumption in emerging markets contributed to a complex international economic web this year. By Arnold J. Karr

THE DEVELOPED AND developing nations of the world engaged in a bit of role reversal in 2013. UNEVEN GROWTH More advanced economies made some progress on their long, slow road to recovery 2012-2014 Real and Projected GDP Growth following the 2008 financial crisis and the more recent chaos in the euro zone. COUNTRY 2012 2013* 2014* SPRING/SUMMER Meanwhile, China, the world’s second- 2015 largest economy after the U.S., pulled back Argentina 1.9% 3.5% 2.8% from its stratospheric growth rates and, in a move that already has impacted some of the Australia 3.7% 2.5% 2.8% aspirations of Western luxury firms, began a crackdown on ostentatious spending. Brazil 0.9% 2.5% 2.5% The shift in economic momentum wasn’t restricted to China, though. Canada 1.7% 1.6% 2.2% “The global growth constellation is chang- ing,” proclaimed the International Monetary China 7.7% 7.6% 7.3% Fund in its October report “World Economic Outlook: Transitions and Tensions.” “Activity France 0.0% 0.2% 1.0% Textile and Accessory in the major advanced economies has start- ed to accelerate from subdued levels. By Germany 0.9% 0.5% 1.4% top-end collections for contrast, growth in China and many other womenswear emerging market economies in Asia and Greece -6.4% -4.2% 0.6% Latin America, and to a lesser extent in the and menswear Commonwealth of Independent States [pre- India 3.2% 3.8% 5.1% viously part of the U.S.S.R.], has cooled, after a surge in output beyond potential following Indonesia 6.2% 5.3% 5.5% the recovery from the Great Recession.” Among the BRIC, or Brazil, Russia, India Italy -2.4% -1.8% 0.7% and China, nations, even Brazil — which is expected to grow at a 2.5 percent clip this Japan 2.0% 2.0% 1.2% www.milanounica.it year — has seen higher inflation that could weigh on consumption, while depreciation Netherlands -1.2% 1.3% 0.3% of the currency has helped to make it more attractive to outside investment, according Russia 3.4% 1.5% 3.0% to the IMF. The struggle to put larger economies back Spain -1.6% -1.3% 0.2% into growth mode hasn’t been without chal- lenges, some of them self-inflicted. In the U.S., Sweden 1.0% 0.9% 2.3% ongoing political attacks on the Affordable Care Act laid the groundwork for a 16-day Switzerland 1.0% 1.7% 1.8% shutdown of the federal government, the third longest in the country’s history. With no bud- Turkey 2.2% 3.8% 3.5% get deal to fund operations past Sept. 30, the government discontinued nonessential oper- United Kingdom 0.2% 1.4% 1.9% ations, and in the process sucked $24 billion out of a still-struggling economy. United States 2.8% 1.6% 2.6% The shutdown and continuing debate — stimulus versus austerity — took a large bite Average 1.4% 1.7% 2.4% out of consumer confidence, just as retailers were getting ready to bring out their holiday SOURCE: INTERNATIONAL MONETARY FUND, OCTOBER 2013 finery in a push for seasonal sales that con- *FIGURES FOR 2013 ARE ESTIMATES BASED ON FIRST-HALF FIGURES; 2014 FIGURES ARE ESTIMATES. tinue to be difficult to attract without pro- motions. The Conference Board’s Consumer But lurking in the background has been a fear Confidence Index fell from 80.2 in September to among investors that good news on the U.S. jobs 72.4 in October and continued its downward trend front could lead the Federal Reserve to “taper” in November, when it registered 70.4. the bond-buying program that has helped rev Lynn Franco, director of economic indicators America’s economic engine in the absence of at The Conference Board, noted in the aftermath meaningful stimulus from Congress during the last of the shutdown, “Similar declines in confidence three years of the Obama presidency. The Federal were experienced during the payroll tax hike ear- Reserve Open Market Committee is scheduled to lier this year, the fiscal cliff discussions in late 2012 meet this week and the markets will be watching and the government shutdown in 1995-96. However, closely for any sign of a pullback by the Fed in the given the temporary nature of the current resolu- months to come. tion, confidence is likely to remain volatile for the The jobs gains are but one element of a wider next several months.” discussion about wealth distribution in the U.S. That could hardly be good news for a U.S. econ- Liberal economists and think tanks are fond of omy that derives more than two-thirds of its power pointing out, as Obama did in September, that 95 from consumer spending. percent of income gains since the start of the re- Of course, that was before House and Senate con- covery in 2009 have gone to the wealthiest “1 per- ferees on Dec. 10 said they’d reached an agreement cent.” For luxury apparel brands and retailers, on a new budget. that’s been good news as improvements in stock Unemployment in the U.S. peaked at 10 percent portfolios and more recently in real estate values in October 2009 following the financial quake of have helped sustain luxury spending, from cars September 2008, but its decline has been slow and, to clothes. in some ways, a double-edged sword. When word Still, it’s left disposable income constrained arrived on Dec. 6 that the U.S. economy had added among the less affluent, making it difficult for many a better-than-expected 203,000 jobs in November, retailers who cater to working-class adults and sending the unemployment rate to its lowest level teens to make their numbers each month. in five years, stocks responded positively, with the A similar dynamic has emerged in the 17 na- Dow Jones Industrial Average picking up 1.3 per- tions that make up the euro zone, in which vastly cent to close above the 16,000 mark at 16,020.20. different economies share a common curren- Then again, stock prices and the outlook for cor- cy. Unemployment in the zone fell for the first porate profits haven’t been an area of weakness for time since early 2011 in October, but hardly to the economy: The Dow was up 22.3 percent for the a level that would signal a strong recovery. The year through that date. 12.1 percent level of two months ago meant that WWD MONDAY, DECEMBER 16, 2013 19 WWD.COM

19.3 million residents of the area were Now other nations are pushing lion. By comparison, online sales without jobs, and the number was 26.7 for Germany to limit the surplus for Cyber Monday, Dec. 2, in the million among residents of the 28 na- in the hope that it will let them U.S. were up 16 percent to about tions in the European Union. Austria in on some of the economic $2.29 billion, according to Adobe and Germany enjoyed the lowest rates growth to be had in Europe. Digital. — 4.8 and 5.2 percent, respectively — Outside the zone, after China is on track to become while the rates were highest in Greece several years of emphasis on the world’s largest economy, sup- (27.3 percent) and Spain (26.7 percent). austerity from the govern- planting the U.S., by 2025, accord- As in the U.S., youth unemployment ment of Prime Minister David ing to a recent report by Frost & remains at higher levels, again topped by Cameron, U.K. economists Sullivan, but it’s pushing for a Greece and Spain at 58 and 57.4 percent, were encouraged by news this greater emphasis on consumption respectively, according to Eurostat, the month that Great Britain’s — even if not of the conspicuous keeper of statistics for the EU. Italy, still economy grew 0.8 percent variety — and less dependence on battling recession along with much of the for the quarter ended in investment and exports as it seeks rest of southern Europe, had a 12.5 per- November after a 0.7 percent a more sustainable road map for cent unemployment rate. growth rate in the prior three growth than its current produc- The possible political fallout from months. The IMF expects the tion-based model. China also faces European joblessness was driven home U.K.’s gross domestic product President Obama speaks during the the challenges of a rising wages, this month when Eurostat estimated that to grow 1.9 percent next year, government shutdown in October. causing some firms to switch pro- about 124.5 million Europeans — just slightly below the projected AP PHOTO/CHARLES DHARAPAK PHOTO BY duction from the country, and an under one-quarter of the population — U.S. growth rate of 2.6 percent. April, has some economists on edge aging population. It has attempted are at risk of poverty or social exclusion. Under Prime Minister Shinzo Abe, about Asia’s second-largest but by far to counteract that somewhat by relaxing As in the U.S., policy matters are at the Japan is one of the few large economies most mature economy. the one-child rule it enforced for decades. core of euro zone battles with Germany, — the world’s third largest — to try the The eyes of the world remain focused Ultimately, the IMF believes, pros- the largest and strongest economy in ei- stimulus path as it combined 5.5 trillion on China, not only for the implications pects for continued global recovery in ther the zone or the EU very much in the yen, or $64 billion at current exchange, of its own ability to sustain double-digit 2014 will all come down to China. driver’s seat. Even with a slight reduction in stimulus spending and 1 trillion yen, growth, but for the effects that any kind “The main threats to the outlook are in October, Germany’s trade surplus has or $11.6 billion, in tax cuts, in addition of pause in that growth could have on a global economic downturn or a fur- been a key ingredient in keeping the euro to a 20 percent depreciation in its cur- other markets. Observers were encour- ther deceleration of growth in China crisis from8 becoming more severe and rency, to get its economy moving. But aged by an expansion of 13.7 percent or other major emerging markets that probably in keeping all nations aligned disappointing growth of 1.1 percent in in retail spending in November, which could weaken exports through lower with the currency, even though it exacted GDP in the third quarter was seen as included Chinese Single’s Day on Nov. commodity prices or reduced inflows of fairly harsh and unpopular austerity mea- a blow to so-called “Abenomics,” and 11, when sales at Alibaba’s Taobao and aid and foreign direct investment,” the sures from other euro nations to do so. a boost in consumption taxes, due in Tmall platforms exceeded $5.75 bil- IMF concluded. 20 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION TOP 10 STORIES

Protesters outside Barneys Race Relations New York in October. Several incidents of alleged racial profiling sparked retail controversy just as the holiday shopping season was kicking off. By Lisa Lockwood

“SHOP AND FRISK” became part of Macy’s flagship after purchasing a $1,350 the vernacular this year when three gold Movado watch for his mother. African-American shoppers were “We’re not going to live in a town detained by the New York Police where our money is considered suspect, Department after making expensive and everybody else’s is respected,” said purchases at Barneys New York and Rev. Al Sharpton at a rally in Harlem. Macy’s — setting off a civil rights fire- He added that young African-Americans storm in New York City leading up to save their money for things they want to the holiday shopping season. buy: “They take a lot of money and go Lawsuits were filed against Barneys to your store, and are treated like sus- and Macy’s, the city and the NYPD. pects.” He said, “We’ve gone from ‘stop New York’s Attorney General Eric T. and frisk,’ to ‘shop and frisk.”’ Schneiderman began an investigation Shawn “Jay Z” Carter was brought into alleged racial profiling at Barneys into the thick of the action because he and Macy’s, and the New York City collaborated with Barneys on an exclu- Commission on Human Rights began its sive holiday collection called “A New own probe into racial profiling and loss York Holiday.” Carter drew criticism for nomic hardship. In addition, when the

prevention at big retailers in the city. STEVE EICHNER PHOTO BY going ahead with the BNY SCC Gallery collection launched on Nov. 20, Barneys Trayon Christian, 19, filed a discrimi- Rev. Al Sharpton, Scott Stringer and Kirsten and Collection, and there was an online donated 10 percent of all retail sales nation lawsuit in state Supreme Court John Foy after a retail task force meeting to petition asking him to withdraw from the from Barneys stores in the U.S. and bar- in Manhattan against Barneys, the city discuss racial profiling in stores. deal. Carter decided to go forward with neys.com, with a guarantee of raising at and the NYPD. According to the law- the collection, provided he was given a least $1 million for the foundation. suit, Christian, shopping at Barneys on after purchasing a $2,500 Céline handbag “leadership role” in addressing racial “I am in a unique position to use my April 29, bought a $349 Ferragamo belt. at Barneys in February, and filed a $5 mil- profiling issues. voice to affect change to this disturbing After leaving the store, he allegedly was lion notice of claim against the NYPD. The retailer and the entertainer also issue. The easy position would have been accosted by undercover NYPD officers Robert Brown, an actor who stars in agreed to donate 100 percent of the pro- to walk away and leave policy making to who said someone at the store had raised the HBO series “Treme,” filed a lawsuit ceeds to the Shawn Carter Foundation, others hoping that someone addresses concerns about the sale. Kayla Phillips, against Macy’s after he was stopped by which provides educational opportuni- the problem. I will not leave the outcome 21, claimed she had a similar experience the NYPD in June and paraded though ties to young people facing socioeco- to others,” Carter said on his Web site. IT’S ABOUT THE RELATIONSHIP.

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WWD MONDAY, DECEMBER 16, 2013 21 WWD.COM nor initiate” any police action against Meantime, the·· Attorney General’s of- charged with working on industry-wide the two African-American customers fice received information from Barneys policies and standards,” said Foy. who claimed they were wrongly ac- and Macy’s and started to call witnesses. Barneys issued an internal memo cused of credit card fraud. Yaki also Its investigation is “active and ongoing,” to its store security staff on Nov. 26 found that Barneys has a formal antira- according to a spokesman. saying it will begin monitoring the cial profiling policy. A retail forum, organized by the police as they monitor shoppers at its At a press conference at the National Retail Council of New York and the New Manhattan flagship. Action Network’s Harlem headquar- York Metropolitan Retailing Association, On Dec. 9, Sharpton held a press ters, Mark Lee, chief executive officer of was held on Nov. 22 to tackle issues such briefing and said that the retail task Barneys, said: “Barneys New York has zero tolerance for any form of discrimi- nation and we are committed to treat- I am in a unique position to use my voice ing everyone who comes into our stores with respect and dignity.” A City Hall hearing was held on Nov. to affect change to this disturbing issue. 20, and representatives from Barneys, Macy’s and the NYPD were not pres- The easy position would have been to walk ent, although the retailers did submit written testimony. Those who testified away and leave policy making to others included Donna Lieberman, executive director of the New York Civil Liberties Union, and Patricia L. Gatling, commis- hoping that someone addresses the problem. sioner and chair of the New York City Commission on Human Rights. Gatling I will not leave the outcome to others. sent letters to 17 ceo’s of the largest re- tailers that do business in New York on — SHAWN “JAY Z” CARTER Nov. 13, asking about their loss-preven- tion policies, their relationship with the as racial profiling and loss prevention, force had hammered out a Consumers’ PHOTOS BY STEPHEN SULLIVAN PHOTOS BY police and thefts that have occurred. and was attended by retailers includ- Bill of Rights, which would be posted on He reportedly joined Barneys’ internal She set a deadline of Nov. 22 for the re- ing Macy’s, Barneys, Hudson’s Bay Co. participating stores’ Web sites and in- advisory council to deal with racial pro- tailers to respond. (which owns Saks Fifth Avenue and Lord store, and on the Retail Council of New filing and was involved in creating new Macy’s and Bloomingdale’s didn’t re- & Taylor), Neiman Marcus, Bergdorf York’s Web site. The Bill of Rights states, guidelines for the way the retailer inter- spond by Nov. 27 and were subpoenaed. Goodman and Gap, as well as Sharpton; “Profiling is an unacceptable practice acts with the NYPD. Macy’s filed objections regarding the Manhattan Borough President Scott and will not be tolerated.” It also says Throughout the controversy, both subpoena, and the commission had 30 M. Stringer; Marc H. Morial, ceo of the employees “who violate the company’s Barneys and Macy’s said their employ- days to consider the objections and make National Urban League; Alphonso David, prohibition on profiling will be subject to ees were not involved in detaining the a decision. Still, the commission set a deputy secretary for civil rights for Gov. disciplinary action, up to and including customers. Barneys retained attorney Dec. 10 deadline to receive Macy’s docu- Andrew Cuomo, and Kirsten John Foy, termination of employment.”·· Michael Yaki, a civil rights expert who ments. The company submitted some ma- president of the Brooklyn chapter of the Sharpton said he was looking forward serves on the U.S. Commission on Civil terials Dec. 10 and was expected to meet National Action Network. to sitting down and discussing these is- Rights, who concluded that Barneys’9 with the commission on Dec. 13 with ad- “It’s just the start of a dialogue, and sues in the coming days with incoming employees did not “request, require, ditional material. we’re forming a task force that will be Police Commissioner William Bratton. FLATIRON / UNION SQUARE FLAGSHIP 7,831-21,398 SF

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1. Source: mta.info 2. Findingsgy from a study completedp byygy BFJ Planning on Saturday October 26th, 2013 & Wednesday y October 30th, 2013. Research was obtained from sources considered reliable but no representationpy is made by ABS Partners Real Estate LLC or any y of its affiliates as to their completeness or accuracy. *Licensed RE Associate Broker, All information is from sources deemed reliable but is subject to errors or omissions of any magnitude, withdrawal from market, or changes in terms, all without notice. Brokers employment and payment only by written agreement. 22 WWD MONDAY, DECEMBER 16, 2013

THE YEAR IN FASHION TOP 10 STORIES

Wearhouse to mine the good will of the agent” status with MW, seeking a meet- growing Made in America trend. ing in which the retailer’s bylaws could Then, just as the focus turned to cre- be modified and its board changed. ativity and plans for a significant roll- Then, less than two weeks after out of the Joseph Abboud brand within Jos. A. Bank’s offer expired, Men’s Men’s Wearhouse’s 1,200 stores in the Wearhouse turned the tables and went Gentlemen’s on the offensive, offering to acquire U.S. and Canada, things got even more interesting. Bank instead for $55 a share in cash, Word leaked out that Men’s or about $1.54 billion. The initial offer Wearhouse’s key competitor, Jos. A. price represented a 32 percent pre- Bank Clothiers Inc., with funding from mium to Bank’s stock price of $41.66 Golden Gate Capital, had made an on Oct. 8, the day Bank’s takeover bid Agreements overture to acquire the company for was made public, but was below the $48 a share in cash. Although Men’s $56.30 closing price on the day Men’s The saga of the country’s two largest public men’s Wearhouse received the proposal on Wearhouse revealed its bid. Sources say Sept. 18, it didn’t reject the offer until it’s likely MW will raise its offer to make retailers is still not resolved. By Jean E. Palmieri Oct. 9, when Jos. A. Bank publicly dis- the deal happen. closed it. The offer represented a 42 Some advantages of the MW offer in- percent premium to the closing price clude the fact that it would be funded MEN’S WEARHOUSE marked its 40th Superstore division. He was also against of Men’s Wearhouse’s stock of $33.71 on entirely from cash on hand and debt birthday in 2013, and the company positioning designer Joseph Abboud, Sept. 17, and a 17.8 percent premium to financing, whereas Bank’s acquisition is living through the quintessential who was brought in as chief creative offi- the 52-week high and five-year high of of MW would have required cash, new midlife crisis. cer in December 2012, as the style expert $40.75, according to an investor presen- debt and $250 million in equity financ- Things started to get interesting in for the retailer, sources said. tation from Goldman Sachs and Financo ing from Golden Gate Capital. June when George Zimmer, the found- Richard Jaffe, an analyst who fol- Inc. that was filed with the Securities MW has more stores and its sales er and gravelly voiced pitchman, was lows the firm, said Zimmer was having and 10Exchange Commission. Jos. A. for the last 12 months outpaced Bank’s unceremoniously fired. Zimmer, who a hard time relinquishing control, an Bank, itself under pressure to find an by a $2.5 billion to $1 billion margin. started the $2.5 billion company in 1973 issue the company seemed to confirm and was executive chairman at the time when it said Zimmer was seeking “veto of the ousting, was terminated on the power over significant corporate deci- A Men’s morning of the company’s scheduled an- sions.” When Zimmer didn’t get to make Wearhouse nual shareholders meeting. the big decisions, he began talking to store. Although Zimmer had willingly investment banks about buying the com- turned the reins of the retailer over to pany and taking it private. That didn’t current chief executive officer Douglas amount to anything and within days of Ewert two years earlier, he continued his ouster, Zimmer resigned from the to be a visible presence at the company, board, although he was the company’s participating in quarterly earnings calls largest noninstitutional shareholder and remaining as the face in television with 3.5 percent of its stock. advertising. His tag line, and bearded All that turned out to be just Act I. face, touting: “You’re going to like the The next month, the company signed way you look. I guarantee it,” became a definitive agreement to acquire JA part of the country’s lexicon. But behind Holding Inc., owner of the Joseph the scenes, Zimmer began taking issue Abboud name and trademark, for $97.5 with the company’s future direction, million in cash, a move that reunited and made no secret of his feelings. Most the original designer with the label he egregious, according to sources, was his created in 1987. The deal also included disagreement with The Men’s Wearhouse the purchase of the Abboud factory in Inc.’s plan to sell its K&G Fashion Massachusetts, which will allow Men’s PHOTO BY ROBERT MITRA ROBERT PHOTO BY

acquisition and another strategic alter- MW also has more experience making native, agreed to consider raising the and integrating acquisitions, including price after conducting due diligence. Joseph Abboud; After Hours, a formal- The drama didn’t stop there. wear specialist, and Moores, a Canadian Hedge fund Eminence Capital men’s wear chain. bought a 9.8 percent stake in Men’s As of press time, Bank had said only Wearhouse and pushed the company to- that it had received the offer and would ward a merger with the smaller Jos. A. review it. According to Gilbert Harrison, Bank chain, saying it believed the value Financo’s chairman, who is counseling created from combining the two firms is Bank, “This has been a strange turn of “massive, with the potential for $2 bil- events, the most recent in a string of lion of value to be created.” strange actions by the board of Men’s Men’s Wearhouse still didn’t budge Wearhouse. Jos. A. Bank will, of course, in its dismissal of the Bank offer and fulfill its fiduciary obligation to share- George Zimmer refused to talk to its rival, a decision holders and thoroughly evaluate the that prompted Eminence to seek “white Men’s Wearhouse proposal.”

Mandee Shops, Annie Sez bankruptcy petition, which BUILDING #19: The 10-unit and Afaze nameplates filed included parent company closeout chain filed for Chapter 11 for Chapter 11 bankruptcy Revolate Holdings Inc. as bankruptcy protection in Boston Bankruptcy Watch protection in early January after a related entity. Lipman in November. Saying its stores a nasty one-two punch, with has begun scouting new in New England were unable to COMPANIES STRONG ENOUGH NICOLE FARHI: The fashion brand the difficult implementation of opportunities. compete in the area of Internet to outlast the Great Recession filed for the U.K. equivalent a merchandising information shopping, it set itself on a course were well-tuned for the of Chapter 11 bankruptcy system followed by the calamitous MARITHÉ + FRANÇOIS GIRBAUD: for liquidation. challenges ahead of them. Still, protection in July and was almost impact of Superstorm Sandy. The After filing for the equivalent a few succumbed to financial immediately acquired by Maxine company has moved ahead with of Chapter 11 bankruptcy MY-WARDROBE.COM: The pressures in 2013 as the long, Hargreaves-Adams, owner of plans to reorganize. protection in 2012, the British online fashion retailer slow recovery continued in the Fenn Wright Manson and A French company was ordered entered the U.K. equivalent of U.S. and Europe. Most of these Damsel in a Dress, which she LIPMAN OPERATING LLC: The to liquidate in November. The bankruptcy proceedings and have found new homes or other purchased in 2012 and earlier company housing marketing founders and company president was immediately bought by ways to remain in business. this year, respectively. guru David Lipman’s advertising Denis Noharet are seeking to Growth Capital Acquisitions Among the limited number of agency, Lipman, in September resurrect the brand with new Ltd. in November. casualties: BIG M INC.: The owner of the filed a voluntary Chapter 7 backing. — ARNOLD J. KARR WWD MONDAY, DECEMBER 16, 2013 23 WWD.COM

THE YEAR IN FASHION

launch of Style.com’s twice-a-year print version continue to slip and Elsewhere, the increasing bundle print magazine. digital ad revenues to rise. of digital and print issues has driven Best known for his 15-year both advertising and subscription Media Moments career at The New York Observer, NEW YORK TIMES revenue. According to data from the where he served as editor in chief, MAGAZINE DEPARTURE Magazine Publishers of America, CHANGING TIME purchase ended the Graham family’s Kaplan helped cultivate the voice of Hugo Lindgren, editor of The New York Publishers Information Bureau- In November, Time Inc. filed the 80-year control of the paper. a generation of young journalists and Times Magazine, will depart at the end member consumer magazine titles initial public offering documents for craft a narrative about New York. of the year. A successor for the Sunday show print “improving” and tablet its spin-off from parent company PETER W. KAPLAN magazine editor, who was appointed in ad units with “significant gains” Time Warner Inc., which is expected Fairchild Fashion Media’s editorial ANNA’S ASCENSION 2010, has yet to be named. in the third quarter. Print ad pages to take place in the first half of director Peter W. Kaplan died on Anna Wintour, Vogue’s editor in and tablet ad units on iPads were next year. The filing wrapped up Nov. 29 at age 59 after battling chief, added the role of artistic NO MORE CONDÉ NAST INTERNS up 6.8 percent and 7 percent, an eventful year for the publishing lymphoma for the past year. At director of Condé Nast. In the newly Condé Nast will cease its internship respectively, in the period from firm. Two months earlier, Time Fairchild, Kaplan was instrumental created job, Wintour oversees the program starting in 2014, following January through September 2013 Inc. bought American Express in relaunching and redesigning direction of some of the company’s lawsuits filed by two former interns versus the prior-year period. Ad Publishing and its five magazines, WWD.com; was the driving force more pressured titles. who claimed they were paid below the pages in print slid 1.8 percent, as including Travel + Leisure, Food + behind the relaunch of the former Since her appointment in March, minimum wage during internships at tablet ad units grew 17.5 percent. Wine and Departures. Fairchild men’s magazine M as a she has consulted on the layout of W and The New Yorker. The decision Print ad revenue expanded 4 Joe Ripp took the reins as quarterly, and was an innovator of Brides and Glamour, and has also follows a slew of similar lawsuits percent from the year-ago period. Time Inc.’s chief executive officer “reverse publishing,” print media been involved in key appointments aimed against companies such as According to the Alliance for and a new reporting structure was derived from Web content, with the at the top of several mastheads, Hearst and Fox Searchlight. Audited Media, for the 390 U.S. installed, in which managing editors including Teen Vogue alum Eva consumer magazines reporting report to business executives. That Peter W. Chen as editor in chief of Lucky and DIGITAL VS. PRINT ADVERTISING comparable paid and verified ruffled a few feathers, stirring the Kaplan Pilar Guzmán as editor in chief of With the rise of digital publishing numbers, total paid and verified departure of Martha Nelson, the Condé Nast Traveler. and iPad editions, companies and circulation fell about 1 percent. company’s first female editor in chief advertisers are increasingly focusing Paid subscriptions were down 0.1 in 90 years. In her wake, Norman FORBES FOR SALE on the Web. The emergence of percent, and single-copy sales Pearlstine returned to the company Forbes Media LLC is putting native advertising in recent years has declined by about 10 percent. as chief content officer, a new role itself on the block. The publisher enabled publishers to attract new Digital editions continue to that tasks him with working with of Forbes magazine and forbes. streams of revenue even as it raises be a small but growing piece of both the editorial and business com hired Deutsche Bank AG ethical questions about the separation magazines’ total circulation mix, teams, and reporting to Ripp. to examine the deal. Following between advertising and editorial. nearly doubling year-over-year. For years of dwindling sales, Forbes, According to Forbes Media chief the first half of 2013, magazines BEZOS BUYS THE a proponent of native advertising, revenue officer Mark Howard, native reported a total average of 10.2 WASHINGTON POST is hoping to raise at least $400 advertising is expected to account million digital replica editions, or In August, Jeffrey Bezos, founder million, but reports say $200 for 20 percent of his company’s paid, verified and analyzed nonpaid, and chief executive officer of million is more realistic. ad revenue in 2013, up from 10 accounting for 3.3 percent of total Amazon.com, surprised media percent last year. circulation. This compares with types when he agreed to buy The NEW YORK MAGAZINE CUTTING ISSUES The Federal Trade Commission is 5.4 million digital editions, or 1.7 Washington Post Co. for $250 Beginning in March, the magazine eyeing the sector, holding an all-day percent of total circulation, in the million. Acquired by Bezos’ private will reduce its frequency to biweekly hearing recently to discuss the pros first half of 2012, AAM said.

investment firm Nash Holdings, the THOMAS IANNACCONE PHOTO BY from weekly as ad revenues in the and cons of native advertising. — ALEXANDRA STEIGRAD

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THE YEAR IN FASHION PEOPLE & PARTIES

Heidi Klum at The Weinstein Co. Golden Globes after party. Jason Wu and Kerry Washington at the designer’s postshow party.

Sarah Jessica Parker, Gwyneth Stella McCartney Paltrow and Kate and Amy Poehler at Lady Gaga at the Hudson at the the designer’s resort Watermill Center Tiffany & Co. presentation. Summer Benefit. Blue Book Ball.

Pharrell Williams Olivia Palermo at performing at the New Yorkers the Calvin Klein for Children postshow party. Fool’s Fete.

Cara Delevingne at the Party Hardy Cannes Film Festival.

THE PAST YEAR saw quite a jam-packed party docket, from Los Angeles’ winner’s Katy Perry circle festivities post-Golden Globes and Oscars kicking the year off to the Met’s punk and Madonna partying in May; the summer’s celebratory romps in Cannes, France, fashion week’s at the Met late-night blowouts at Top of the Standard, and the southern migration to Miami for Ball after Art Basel. The Eye takes a look at the best bashes of 2013. party. ORELAND; ORA BY STÉPHANE FEUGÈRE; KLUM BY MIKE WINDLE/GETTY IMAGES FOR TWC BY STÉPHANE FEUGÈRE; KLUM ORELAND; BY ORA

Olivier Zahm, Harley Viera- Raf Simons and Newton and Annabelle Daria Strokous at Dexter-Jones at Chanel’s the Dior-hosted annual Tribeca Film Festival Guggenheim Arts dinner. International Gala.

Peter Brant Jr., Sofía Rita Ora, Joan Smalls Sofia Vergara and Vera Sanchez Barrenechea and eye and Ciara at the Wang at the 2013 CFDA Harry Brant at Giorgio “Mademoiselle C” party. Awards after party. Armani’s “One Night Only.” PARKER, ZAHM, BRANT, VERGARA, SIMONS, MCCARTNEY, PERRY, LADY GAGA, WILLIAMS AND PALERMO PHOTOS BY STEVE EICHNER; WU BY LEXIE M STEVE EICHNER; WU BY PHOTOS BY LADY GAGA, WILLIAMS AND PALERMO PERRY, VERGARA, SIMONS, MCCARTNEY, ZAHM, BRANT, PARKER, WWD MONDAY, DECEMBER 16, 2013 25 WWD.COM

is too sophisticated, people don’t So how do you live your dash?” just see me as I am and because appreciate it, it seems that more — Anya Hindmarch, Sept. 5 we’re so similar.” basic things are appreciated more.” — Lady Gaga, Nov. 14 — Miuccia Prada, May 24 “What I love about riding is the They Said It freedom part. When you’re out “If I have a regret, it’s that I never “The second you call yourself there, no one knows that it’s you. got to work with [Robert] Redford Fashion’s most quotable, at it again. a lifestyle, you have access You have a full-face helmet on, so on another movie, that I never got to to anything.” you enjoy just being alone.” work with Jack [Nicholson] again.” Compiled by Dianne M. Pogoda — Claire Distenfeld, — David Beckham, on riding — Bruce Dern at the after party Fivestory; May 29 a motorcycle; Sept. 15 for the premiere of “Luxury sells well, but I always “I think there was a story that “Nebraska”; Nov. 8 thought it was good to have something Onassis had a kind of game with “I hate nostalgia. Fashion is about “When Milan sets its mind on more basic that is of value as well.” another Greek friend that he could now. I hate to look back. You have something, it knows how to do it right.” “They are here to drool.” — Jean Paul Gaultier, Jan. 2 get any woman he wanted. This is to look a little bit back to look — Giorgio Armani on the — La La Anthony, what we thought [of] this business forward, but it’s a business where “One Night, One Voice” commenting on the men at the “Everyone chooses to mess up with Jacqueline.…It was like a joke. the past doesn’t count. You’re event at La Scala; Sept. 18 Victoria’s Secret show; Nov. 14 their life in a certain way whether as good as your last collection. by taking too many drugs or too You can do 25 great collections “New is what you do next, it’s not “We have always seen art and few drugs. Or there are vegans Gina and if the last one was a rotten anything else.” commerce not as opposing forces, who smoke a pack of Camels a day Lollobridgida collection — you’re going to — Marc Jacobs, Oct. 3 but as two sides to the same coin. and get tattooed, but they don’t be remembered for that rotten There is tremendous potential, and think about the toxins of getting collection.” “The young consumer lives in a fuel in the tank.” a tattoo.…I want people to think — Oscar de la Renta, May 31 digital world. Digital is like oxygen. — Christopher Bailey, Nov. 14 of George Burns, Jimmy Durante, It’s omnipresent and indispensable. someone who really can’t sing.” “I love Apollo 8. That’s my favorite It’s everywhere and it’s always on.” “We have not yet come up with a — Isaac Mizrahi, describing his mission: Christmas Eve, 1968, the — Trevor Edwards, Nike, Oct. 10 business model that can support much chit-chat/cabaret show; Jan. 4 first time we go around the moon. of the journalism that is important.” It’s just so incredibly dramatic, “So the average Apple store — Norman Pearlstine, Time Inc., “At the end of the day, the human the guy’s reading Genesis — and probably draws more traffic on the media industry; Nov. 15 body has two arms, two legs and a now in our very secular world, that to a shopping center than any torso. A lot of the shapes that can be seems so odd, and yet it seems department store does.…I don’t “Due to imaging, people think I’m worn have already been created. It’s so perfect — Marilyn Lovell on find that at this point in my young someone that I’m not. The innovative not about three sleeves or three pant It was not a love affair, obviously, Christmas Day opens the door and life and probably in yours that part of that is when you have a man legs or anything like that. For us, it’s but also for other reasons. There it’s a mink coat and it’s got this there is a great reason to go to a who comes with a scent which I would about the surface. That’s what the are men that you can see love card [from Jim Lovell]: ‘To Marilyn, department store or to a shopping say is more womanly, I think that’s future of fashion is. It’s technology.” one woman. You can see when a from the Man in the Moon.’ One center to buy a pair of jeans.” innovative, especially when you have a — Lazaro Hernandez, Jan. 9 man doesn’t love a woman. With day humanity takes off to the stars — Leslie H. Wexner, Oct. 17 man who will admit it. But that’s due Jacqueline, it was not a love affair. and yet here are these incredibly to the fact that I’ve been reared by “The only thing the media really It was a contract, I mean, terrible.” human, ‘down-to-earth’ moments.” “It’s true: I am an optimist. And on nobody but women, and those are the can get in the way of is my privacy. — Gina Lollobridgida, April 8 — Lily Koppel, author of “The that level, I swim in the opposite kinds of things that attract me.” Privately, yeah, it’s a pain in the Astronaut Wives Club,” June 11 direction of a lot of those in the — Armando “Pitbull” Pérez, “You might speak French or English fashion industry.” Nov. 15 or German or Chinese, but in the “We’re more social because we — Mickael Kors, Oct. 30 Rihanna end, we speak with the eyes. It’s an have more women.’’ “At Wang, there’s more of this ease international language.” — U.S. Supreme Court Justice “We’re living in a world today and more of a chill-out vibe. There’s — Alber Elbaz, April 26 Stephen Breyer, on the where technology has taken over in a living room when you walk into the justices’ activities on the D.C. many ways. People are tweeting, store. At Balenciaga, it definitely has “This time of day is very interesting social scene; June 18 texting and e-mailing, and not moments like that but I really wanted — there’s this bright thing up in the connecting. There are very few sky I’m not familiar with.” “One bow won’t hurt.” ways for communities to come Alexander — Party photographer Patrick — Viktor Horsting, on the together. It happens at concerts and Wang McMullan, at a luncheon; April 26 addition of a flourish to an at sporting events. It’s pretty cool austere couture collection; July 8 that every Sunday we have 70,000 “The line is, ‘My makeup is my people come into the Kraft family armor for the dramas that I always “What I wear is looked at. It influences home in Foxborough and all pull fight.’ It’s just saying that my red what other people wear because that’s together. It doesn’t matter what lipstick is almost like my mask for just the world we live in.” background everyone comes from, all the lifestyle dramas that I face, — Cameron Diaz, July 22 whether it’s factory workers, hedge- like everybody else.” fund managers, greats artists in the ass, but at the same time they help — Rita Ora, on a lyric from “The only pope I thought was design and fashion community — me to get my message across.” her song “Uneasy”; April 30 chic was Pius XII. Even though we’re all pulling for the team.” — Rihanna, after her runway he may not be remembered for — New England Patriots bow in London for the Rihanna “I had no idea what it meant to his popularity, I thought he was owner Robert Kraft, Oct. 30 for River Island show; Feb. 20 build a global brand. I wanted to elegant. And Pope John XXIII was start a foundation. That’s something the most charismatic; you can keep “We have to have genius creative “I gave up on perfectionism long I wanted to do since I was little.” all the others.” thoughts precisely four times a ago. When you become a mom, it’s — Tory Burch, May 10 — Karl Lagerfeld, July 26 year and on exact dates. I actually to work with the most amazing whatever — the house doesn’t really write them on my calendar. I write, materials. It’s the ultimate luxury.” look that great, the plants are dead, “A business without a vision isn’t a “In men’s wear, there are always ‘Friday, Nov. 8. Three o’clock. Have — Balenciaga designer you know, the dogs sh-t all over the business, it’s just a pastime.” subtle changes, not big explosions a genius creative idea.’” Alexander Wang, Nov. 15 house. You know, I realized I can’t — Leonard Lauder, May 24 — at least not in my world. The — Tom Ford, Nov. 12 live like my friend Calvin [Klein]. changes don’t happen overnight.” “It’s like ‘Gone With the Wind.’” He lives in perfectionism. I live in “The Internet is incredible, it’s a — Ralph Lauren, Aug. 13 “I really can’t stand to see things — Rupert Everett to Karl Lagerfeld chaos. I don’t know anything else.” very powerful and delicate issue. You come back and back and back. I as he arrived on the Paris set — Vera Wang, Feb. 21 promote the company, rather than “Lake’s dad had mixed feelings, probably have already seen platform of the designer’s latest movie selling products, you have the entire but our friends are really into it. I shoes come back three times. I’m for Chanel; Nov. 19 “We were, we were, we were world looking at you but you know got a bit of feedback, like, ‘Dude, especially shocked when something friends. I told my team to prioritize nothing of them. And if [the content] that’s your wife naked on the cover that was bad to begin with comes “People want to be in fashion. Not her business..…This is a very of New York Magazine,’ but then back. It’s as if every four years working in it, but to be au courant, if important business to us. I don’t the part of me that was a 16-year- Richard Nixon is president again.” you will. They take great pride in it. have an answer of what to do if I Miuccia old fat kid in high school is like, — Fran Lebowitz, Nov. 12 They envision themselves. You see don’t have Martha Stewart brands Prada ‘Yeah. Damn right that’s my wife yourself in a woman’s magazine and in our home [division]. I don’t naked on the cover.’” “As a kid, I never felt, at first you think that if you bought that dress, have a substitute. …I don’t have a — Scott Campbell on anyway, that I had made a terrible you’ll look like her. No you won’t, I hate personal relationship with Martha his wife Lake Bell appearing mistake by dropping out because I to break that to you, but nevertheless.” Stewart. I haven’t responded to naked on the cover of went to work at the Brooklyn Navy — New York City Mayor her since that phone call and I New York magazine; Aug. 21 Yard as an apprentice sheet metal Michael R. Bloomberg, Nov. 25 don’t intend to.” worker. I was 16, and you learn — Terry J. Lundgren, on a “There’s this amazing poem called something from everything you do.” “Don’t you love gossip? It’s so bad phone conversation with ‘The Dash,’ which talks about when — Pete Hamill, Nov. 13 but I can’t help it!” Martha Stewart informing you die, your tombstone will have — Liv Tyler at a party in her him of her deal with the date you’re born and the date “I have real friendships with some honor at Stella McCartney’s you die, and between it is a dash. of [my fans] because some of them

RIHANNA PHOTO BY STEVE EICHNER; LOLLOBRIDGIDA COURTESY OF GINA LOLLOBRIDGIDA; WANG BY GEORGE CHINSEE; PRADA BY JONAH M. KESSEL BY GEORGE CHINSEE; PRADA BY WANG OF GINA LOLLOBRIDGIDA; COURTESY STEVE EICHNER; LOLLOBRIDGIDA RIHANNA PHOTO BY J.C. Penney; March 25 SoHo store; Dec. 6 26 WWD MONDAY, DECEMBER 16, 2013 Burberry Unveils Beauty Box Concept Owens Opens in Miami explore and combine Burberry makeup, fragrance and By SHARON EDELSON By NINA JONES accessories in new, playful and exciting ways.” The space is fitted with oak herringbone-patterned SINCE HE OPENED his first U.S. store in New LONDON — Burberry Beauty Box, a new retail concept floors and features an embossed Burberry check motif York’s SoHo neighborhood in 2008, Rick Owens, the that sells the brand’s makeup, fragrance and accesso- on the walls. It showcases Burberry Beauty’s full makeup Paris-based designer known for his dark, Goth aes- ries, has landed in Covent Garden here. collections in colors inspired by the label’s runway looks. thetic, has had no further retail growth in America. Burberry joins a recent flurry of luxury names setting The label’s fragrances and makeup collections are Now his company is a hive of activity with a new up shop in the area, and the store is located near Chanel displayed alongside accessories in exclusive colors that 2,150-square-foot flagship that opened Saturday in and Dior’s beauty boutiques in the covered piazza. The echo the beauty products. Versions of Burberry’s Crush Miami’s Design District. “We’re looking in L.A. very bijou store is set over two floors, and Petal bags in blush and pink actively,” Owens said. “We do have a space we’re and true to Burberry’s affinity for echo the Tender fragrance, while working on getting. We’re determined to open in all things digital, it uses interac- a gold exotic skin clutch chimes L.A. this year.” Owens is also planning to unveil a tive technology to bring its beauty with Burberry’s Festive makeup store in Milan in February. looks to life. collection. In addition to the brick-and-mortar moves, Owens A digital “chandelier” is made The Beauty Box Bar has a styl- is set to launch his e-commerce site today. up of moving iPad screens sus- ist on hand to advise customers “We haven’t had e-commerce until now,” Owens pended from the ceiling. They how to combine makeup and ac- said. “It was a missed opportunity. We’re not a huge show seasonal Burberry beauty cessories purchases, which can powerhouse. It’s not like we have the power to do content, while screens fashioned then be packaged as gifts. everything all at once. That’s what’s taken us so into the shape of a Burberry The store also offers mini- long. We’ve been working on the design of the site check play moving content in the Outside Burbery Beauty manicures, a fragrance consulta- for a long time. store’s windows. Box in Covent Garden. tion and complementary beauty “A Web site is for places where we don’t have A digital runway nail bar uses consultations. Burberry has done good representation,” Owens added, referring to polishes embedded with RFID away with cash registers, instead department and specialty store distribution. “The chips that allow customers to virtually test nail colors having sales associates carry iPhones that process cus- site will allow us to reach new and existing cus- on different skin tones on a screen. tomers’ payments. tomers with delivery available around the world. Christopher Bailey, Burberry’s chief creative officer The company plans to roll out Beauty Box to more loca- I suspect e-commerce could eventually become an and chief executive officer designate, said the Box brings tions. It is the first retail concept to launch after Burberry important business.” together the brand’s fashion and beauty worlds, “merg- took its beauty business in-house, acquiring its license The Design District flagship at 3841 North ing physical and digital experiences that allow people to rights back from Inter Parfums SA at the end of 2012. Second Avenue came about because Owens “found an available space and it just kind of made sense. We liked it there. We don’t have a schedule where we have little flags on a map. It will happen with her and offering his finan- whenever we have the right people and the right Shop Hers Gets Series A Financing cial support, he put her in touch place to be.” with Patty Wexler, an adviser to The Miami flagship will carry the women’s sellers set their own prices and each Elevation Funds. A few days later, and men’s runway collections, accessories, the By ROSEMARY FEITELBERG seller must cover the cost of shipping Shanfeld hopped a flight to Palo DRKSHDW and Lilies lines as well as Hun furs, its goods to the company’s headquar- Alto, Calif., to meet with three plus a selection of Owens’ favorite DVDs, books SHOP HERS, a resale site geared for ters to be authenticated within two Elevation executives, who each in- and objects. designer labels, has secured its Series or three days. Once an item is sold, vested individually. The designer declined to discuss sales volume A financing with the help of Bono. the buyer’s credit card The site offers ap- for the store. Owens’ business is approaching 100 The financing totals $3 million. It is authorized but is not parel, accessories and million euros, or about $137 million, in revenues. was led by Floodgate’s Mike Maples charged until the item is footwear from 500 de- The flagship “is kind of industrial with big con- Jr. and Ann Miura-Ko, and includes vetted. “We do all the ful- signers and brands. crete pillars — we wanted to keep part of it raw,” investments by Bono and three fillment,” Shanfeld said. “We want to give Owens said. A life-size wax sculpture of Owens hangs other executives from Elevation “Before we started the women the ability to from the ceiling. The torso is made from an eel’s Investors, plus David Tisch of The company, we realized we buy things they love, tail. “It suits Miami, and not just because of the fish Box Group, Aldo Manzini and a will have to be the police- knowing that the item thing,” Owens said. “It’s tarnished silver. It has an el- few others, according to Shop Hers men. We will have to vet will have a second, egant Art Deco feel.” founder Jaclyn Shanfeld. Two seed everything. But the seller third or fourth life,” Wax sculptures are a presence in other stores, round investors — Shana Fisher knows there is no point Shanfeld said. including the Palais Royale unit in Paris and the of High Line Venture Partners and trying to sell fakes.” Shanfeld cofounded Tokyo store. Jaclyn Shanfeld a board partner at Andreessen The site aims to play up the company about a “It’s about vanity but also capturing a man’s mo- PHOTO BY STEVE SHAW PHOTO BY Horowitz, and Mike Hirshland of the social side by match- year ago with Jenna ment in his prime and knowing it’s all downhill Resolute VC — also contributed to ing women who share a similar size Stahl, a former nordstrom.com ex- from there,” said Owens, who designed the sculp- the more recent financing. and sense of style through its Style ecutive who is now Shop Her’s cre- tures. “It’s my way of doing the lord of the manor Nearing 450,000 users and offered Soulmates feature. ative director, and Thanh Khuu, who portrait over the mantle.” Owens even designed the in 129 countries as of two months Manzini, a former Disney ex- worked as ShoeDazzle’s chief tech- sculpture “so it’s pissing. It’s funnier that way.” ago, Shop Hers charges an 18 per- ecutive, connected Shanfeld with nology officer before becoming Shop The Miami flagship will be his seventh store. Other cent transaction fee. On the site, Elevation Partners. After meeting Her’s chief operating officer. units are located in London, Hong Kong and Seoul.

“You know why? Because I love the femininity and she’s really feminine. OK!” he said definitively. “Now you know Molto Cavalli! what I like about women.” “CHE BELLA!” snug “private lounge” Cavalli’s eye for beautiful At the opening of the Just were Miranda Kerr, Heather women has a good track record. Cavalli store in Manhattan Graham, Caitlin Fitzgerald, Sofía In 2005, he said he came across Thursday night, Roberto Sanchez Barrenechea and party a young woman, an unknown Cavalli was in the middle of photographers, reporters and Kerr, and made her a star. Kerr, an interview when he got assorted others. who was huddling nearby with distracted by a young blonde. Cavalli wore his signature a handler, has in fact become Talking business and tinted aviator glasses, so famous that getting her to stores was suddenly the a scarf, and a splendid say a few words about Cavalli last thing on his mind. suntan, the very was harder than getting security “She’s buuuutiful,” eye picture of la dolce vita, clearance to the White House. “I he said in his roaring, surrounded by women Miranda Kerr and remember he believed in me,” she Italian-inflected English. in a space that looked Roberto Cavalli Vita Sidorkina allowed finally of the designer. “Sorry. I like a woman, as shiny as the inside “I discovered Miranda in what can I do?” he said, of a disco ball. The store is the STEVE EICHNER PHOTOS BY Milano. I remember she was a offering one of those trademark secondary line’s first in New love art. I love the people who Sidorkina was next to Cavalli little girl,” Cavalli said. “Oh my Italian shrugs. York nearly two years after go to Art Basel. But honestly, when Marjorie Gubelmann, the god. I fall in love, I fall in love. The young woman was an licensee Ittierre closed down don’t forget that I was born socialite and aspiring DJ who I insisted to my staff that they up-and-coming Russian model, its Fifth Avenue flagship. in Florence. Florence is the was behind the turntables at take her for the Just Cavalli Vita Sidorkina. Cavalli, in town just for the capital of the art of the world. the store, played Sister Sledge’s line and the staff said, ‘Oh no, He was sitting down and occasion, had just returned When you speak about art, you “He’s the Greatest Dancer.” nobody knows her.’ I said, ‘What she was standing up. “Look at from the Art Basel fair in speak about Michelangelo, “I like the eyes,” Cavalli do you care? She is buuuutiful!” her! She’s buuuutiful,” he let Miami, another town that Giotto. The modern art just continued, gushing about A big grin came across his face, out again, this time summoning appeals to his sensibilities. feels…” Here he trailed off and Sidorkina. “I like the sweet a look of vindication. Sidorkina, who sat beside him “Hahaha. It’s very special said something unintelligible smile. That’s the first thing I “Now, afterward, she got on a chaise in a signature ka- for me,” he said, referring to in his colorful English but that notice in a person because that famous, I say to my people from pow Cavalli print. Miami. Cavalli’s laugh is like his suggested he wasn’t all that is the character.” casting, ‘Look, I can see more Commotion surrounded aesthetic — outsize, exuberant, impressed with anything other He admired Sidorkina far than you.’ Hahaha.” them. Crammed into a fortissimo! “I tell you why. I than the masters. some more. — ERIK MAZA WWD MONDAY, DECEMBER 16, 2013 27 WWD.COM

“Casualties of the Gridiron,” Although Self declined to LOOKING NORTH: Versace has Neymar Jr., who follows in the MEMO PAD which was inspired by a 2009 confirm Steiman’s role in the tapped Canadian actor Nolan footsteps of former Police GQ story, Ostroff said more new channel, editor in chief Funk to appear in its spring faces Bruce Willis, George CNE’S SELFIE: Self Magazine channels and projects were Lucy Danziger offered: “Adina is men’s collection. Shot by Clooney, David Beckham and is next in line to get its own coming down the pipeline, but a recognized authority on food, fashion photographers Mert Antonio Banderas. Neymar Jr. digital channel early next year, did not disclose which titles nutrition and healthy living, and Alas and Marcus Piggott, the will appear in Police’s latest WWD has learned. would be next. her expertise is a perfect fit for black-and-white images show ad campaign shot by Rankin. The move is part of Condé However, sources with Self at a time when our brand is Funk wearing some of the The Police brand is owned Nast Entertainment’s push knowledge of the project said newly redesigned and expanding most representative styles by De Rigo Vision SpA. to expand the digital strategy that Self is next in line for a show on multiple platforms.” of Versace’s last collection, Founded in 1983, the company for the publishing company. that will explore the wellness Steiman will assign and including a silk suit, a made a name for itself in The entertainment division, category, which includes fitness edit all content related to black leather jacket, along the eyewear category with which was created in 2011, and healthy cooking. food, nutrition, health, careers with pieces in the brand’s its unusual blue mirrored has already launched a Self ’s latest appointment and relationships, including signature graphic prints. The lenses, and expanded over handful of video channels of Adina Steiman, as features features, news and digital campaign will appear in the the years to include perfume, on YouTube. Dawn Ostroff, director, plays into the plans coverage, according to Self, January issue of international watches and jewelry, as well president of CNE, spoke to launch a digital channel which said the appointment is fashion magazines. as a selection of small leather about the firm’s first two for the title. Steiman, who effective Jan. 2. — ALESSANDRA TURRA goods and clothing. channels, one of which was most recently served as Men’s The new editor succeeds Neymar Jr. is known as a inspired by GQ, the other by Health’s food and nutrition Carin Gorrell, who left the SOCCER STAR: Italian eyewear formidable scorer of goals, Glamour, at the Paley Center editor since 2010, is a TV magazine at the end of October and lifestyle brand Police and will be a forward for for Media last week. regular, appearing on Fox News to become editor in chief of has landed a new global Brazil in the World Cup Showing a clip of CNE’s and shows such as “Bizarre Yoga Journal. brand ambassador for 2014: championship in June. latest documentary series, Foods With Andrew Zimmern.” — ALEXANDRA STEIGRAD Brazilian soccer champion — CYNTHIA MARTENS

sides over the hotel’s restaurant La Scène. TRYING OUT: Nordstrom is becoming some- “I love eating, but I have no interest in thing of a brick-and-mortar incubator for FASHION SCOOPS cooking,” confessed de la Fressange. brands birthed on the Web. The Seattle- Cecilia Bönström, the Swedish-born cre- based retailer carries online men’s wear ative director of Zadig & Voltaire, said brand Bonobos in 80 stores, online foot- she did a little bit of decoration of her wear specialist Sole Society’s products in ADDING A CHAIR: The Federal Reserve Each applicant submitted essays, own at home before coming: She installed 37 stores and has recently started showing Board on Friday designated the chairs offered creative presentations and three Christmas trees. “Advent is a very jewelry e-tailer Blue Nile’s merchandise at the 12 Federal Reserve Banks for were interviewed by industry execu- important tradition in Sweden. We light at its downtown Seattle location. 2014. Myron E. “Mike” Ullman 3rd, who is tives. Four students will be awarded up a candle every Sunday,” said the moth- A Nordstrom spokeswoman said, “This chief executive officer of J.C. Penney a $30,000 Geoffrey Beene is currently a one-store test be- Co. Inc., was named chairman of the National Scholarship, four tween our two companies with Dallas Federal Reserve Bank. other will receive a $10,000 the mutual goal of allowing area Each Fed Board has nine mem- Geoffrey Beene runner-up customers to immerse themselves bers. Ullman was appointed to the scholarship and all 131 stu- in the world of bridal — gowns, ac- Dallas Fed Board in 2008, and was dents will obtain $5,000 schol- cessories and engagement rings — deputy chairman in 2011. Each Fed arships. — R.F. at the Nordstrom flagship store.” Board supervises the banks within its At the store, customers can respective districts and advises the NEW DEAL: When it comes peruse Blue Nile’s engagement Fed on regional business conditions. to maternity wear, Macy’s ring offerings in the comfort of the — VICKI M. YOUNG has a singular point of view. wedding suite and receive guid- Destination Maternity Corp. ance from Blue Nile’s noncommis- MOVING OUT: Vera Wang, who has shown will become the exclusive pro- sioned diamond and jewelry con- during New York Fashion Week at vider of maternity and nursing sultants, but they can’t purchase Lincoln Center since the switch from apparel for macys.com, begin- the rings until they log onto Blue Bryant Park, has set her sights on a ning late January. Nile’s Web site. new location for February. The de- The decision by Macy’s, Nordstrom and Blue Nile signer plans to show her collection at which currently sells online Vincent Darré flanked by wouldn’t comment on the Blue a yet-to-be-disclosed location. a handful of maternity labels, Inès de la Fressange and her Nile program expanding to other — ROSEMARY FEITELBERG also reflects the store’s strategy daughter Violette d’Urso. stores. However, Blue Nile chief to grow leased partnerships DOMINIQUE MAÎTRE PHOTO BY merchandising officer Julie Yoakum MODEL STUDENT: During his pre-fall ap- and make the store and online told the Seattle Times that the pointment Friday morning, there was experience as seamless as possible. er of three boys. She had just returned hope is to grow the concept after it is ample time for Michael Kors to congrat- “We have made significant invest- from New York, where she worked on the tested in the Seattle location. The Blue ulate one of the models — Woodside, ments and progress to ensure our in- brand’s next campaign, featuring Freja Nile merchandise could be displayed in as Calif.-native Mackenzie Drazan had just store and online experiences comple- Beha Erichsen and shot by Terry Richardson. many as 17 more Nordstrom units in the received word that she was accepted ment each other,” said Jeff A. Kantor, — LAURE GUILBAULT near future. — RACHEL BROWN into Duke University. “We were doing macys.com chairman. looks, and she said, ‘My application Destination Maternity operates from Duke just got back,’” said Kors. leased departments in over 600 “I felt very paternal.” Macy’s locations, which typically Though beaming with fatherly carry a combination of Motherhood pride, the designer himself famously Maternity, A Pea in the Pod, A Pea dropped out of the Fashion Institute in the Pod Collection and Jessica of Technology to focus on Simpson Maternity brand- his career, a decision he FOR MORE ed merchandise. SCOOPS, SEE doesn’t regret. When FIT — DAVID MOIN For more career opportunities log on to WWDCareers.com. approached him about an honorary degree, he felt WWD.com MIDNIGHT IN PARIS: Vincent that it was akin to cheating: Darré has applied his “I said, ‘Everyone knows I whimsical touch to the Spaces dropped out. It’s OK.’ I don’t need to Prince de Galles, the Art Deco rewrite history, it actually worked out. splendor that reopened this year It’s fine.” — MARC KARIMZADEH after a major renovation. Darré’s friends, including Inès de la Fressange, COMMERCIAL SCHOLARLY NIGHT: Perry Ellis’ George Kenzo Takada and Gilles Bensimon, REAL ESTATE Business Opportunity Feldenkreis, Tamara Mellon and Lana Cain turned out on Monday night to see Successful company with its own distribution center and NY showroom, Krauter will be honored Jan. 8 at the the hotel’s patio, which he decorated seeks company alesperson with mini- mum of 2 million dollars of business in YMA Fashion Scholarship Fund din- as a winter garden with sofas covered need of back office, EDI, distribution, ner at the Waldorf-Astoria hotel in in Pierre Frey fabrics. and financing to secure growth and Manhattan. Held in conjunction with Guests — who also included Showroom space for share/rent profitability in 2014 and beyond. Los Angeles (2 Spaces Available) Please email all inquiries to the Geoffrey Beene Foundation, the Vanessa Seward and Martine Sitbon — Prominent women’s contemporary [email protected] event is expected to attract more than sipped Dada cocktails, while Catherine multi-line apparel showroom located LUXURY SWIMWEAR & LUXURY in a main fashion building downtown LINGERIE SPECIALIST To subscribe, visit our website 1,000 and will be hosted by Bergdorf Baba spun Twenties-inspired tunes. has a show space available (rack, table, Full Sample Development Goodman’s Linda Fargo. Darré said he considered the chairs) for rent for the 5 LA markets in & Small Run Production www.wwd.com/subscribenow 2014, by annual contract. Beautiful LOS ANGELES Based 213-233-0258 Feldenkreis will take home the Twenties a golden age. “It was a bit showroom has abundant natural and or call 800.289.0273 track lighting, a loft-like feel and lay- Lifetime Achievement award; Mellon like the Palace era, which I lived,” out, is newly and cleanly designed, will pick up the Fashion Innovator he said, referring to the Paris night- and approx. 3000 sq. ft. overall. Please contact Christy at award, and Krauter, who recently re- club scene of the Seventies and [email protected] tired from Sears Holdings Corp., will Eighties. “There was no power at for more information. take home the AMY award. stake, just friendship.” The trio won’t be the night’s only De la Fressage, sporting a Uniqlo winners — YMA FSF scholarships down jacket, was in deep conversa- (800) 423-3314, or email [email protected] will be handed out to 131 students tion with executive chef Stéphanie Le from 46 schools across the country. Quellec, a “Top Chef ” winner who pre- THE FABRIC PILLED HORRIBLY I HAD TO EXCHANGE IT DON’T BUY THIS ONE IT SMELLS OF BODY ODOR I HAD TO RETURN IT I AM NOT IMPRESSED WITH THE QUALITY OF THIS FABRIC AT ALL FABRIC RIPPED ALMOST IMMEDIATELY BRING BACK THE COTTON I WOULD NOT RECOMMEND I CAN STILL SMELL THE ODOR THE FABRIC LOOKS CHEAP DISAPPOINTED IN THE FABRIC IT SMELLS LIKE IT TOOK A CHEMICAL BATH JUST NOT WORTH IT ITCHY FABRIC THIS PRODUCT USED TO BE MADE WITH 100% COTTON

REPLACE COTTON AND YOU MAY HAVE TO REPLACE CUSTOMERS. Research told us that over half of all consumers would be dissatisfied if cotton were taken out of their favorite clothing. Now they’re starting to speak up. The good news is, 56% of consumers say they’re willing to pay more to ensure their T-shirts and denim jeans stay cotton rich. So if you’re thinking of replacing cotton to keep your costs down, you may want to think again. After all, there’s a reason cotton is the fabric of our lives.

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