LIMITED NET LEAPS 45.2%/2 DENISE SEEGAL TO NAUTICA?/4 WWWDomen’s Wear Daily • The Retailers’FRIDAY Daily Newspaper • August 20, 2004 • $2.00 Beauty

Designer Treatment NEW YORK — With the introduction of John Varvatos Skin this fall, the designer will take the unusual step of launching an upscale, namesake treatment line for men. Shiseido’s Zirh International division, Varvatos’ licensee, plans to introduce the 12-item assortment on Oct. 1 in eight to 15 doors. Skin could generate retail sales of $2 million during its first year on the market. For more, see page 8.

Twin Stars: Chanel Hopes Kidman Campaign Will Boost No.5 By Miles Socha Nicole Kidman — will make No.5 “Moulin Rouge” director Baz PARIS — Chanel may already boast it even more of a blockbuster. Luhrmann and a crew of almost has the world’s best-selling scent, The two-minute spot, slated to 200 for a five-day shoot in Sydney but the fashion house hopes its most debut in U.S. theaters Oct. 29 and last December. expensive advertising effort ever — on TV Nov. 11, is certainly a mega “The advertising campaign is key a minifilm starring a couture-clad production, reuniting Kidman with See Chanel, Page 6 PHOTO BY GEORGE CHINSEE; STYLED BY BRYN KENNY GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, FRIDAY, AUGUST 20, 2004 WWW.WWD.COM WWDFRIDAY Limited Net Jumps 45% in Quarter Beauty By Vicki M. Young GENERAL BEAUTY: Chanel hopes its most expensive advertising effort ever, a mini- NEW YORK — Even with the ex- clusion of a special gain from 1 film starring Nicole Kidman, will make the No.5 scent an even bigger hit. the sale of an asset, Limited Income at Limited Brands soared 45.2 percent to $148 million in the Brands still had a terrific sec- 2 second quarter, as sales rose 9.8 percent to $2.21 billion. ond quarter, besting Wall Street’s expectations by 4 cents Roberto Cavalli has signed on to sponsor the Costume Institute’s winter a share. 4 exhibit, called “Wild: Fashion Untamed,” at the Metropolitan Museum of Art. However, shares of the stock Driven by regular-price selling, Nordstrom saw quarterly profits skyrocket lost some ground in trading 12 62.3 percent to $106.9 million, with sales up 9.3 percent to $1.95 billion. Thursday on the New York Stock Exchange following the firm’s an- Galey & Lord filed for bankruptcy to smooth the road for its acquisition by nouncement that August sales 14 investment firm Patriarch Partners, which offered $188 million for the mill. were slightly below plan because SUZY IS ON VACATION of weakness in casual apparel sales. Shares of Limited closed at Classified Advertisements...... 15 $19.99, down 26 cents. To e-mail reporters and editors at WWD, the address is For the three months ended [email protected], using the individual's name. July 31, income was up 45.2 per- WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2004 cent to $148 million, or 31 cents a FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. share, from $102 million, or 19 VOLUME 188, NO. 38. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue in January, May, June and November; two additional issues in February, April, September, October and December; and three cents, last year. Excluding a gain additional issues in March and August, by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 from the sale of Galyan’s Trading West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill Bright, Co., income would have been Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior $137.3 million, or 29 cents, a 34.7 Victoria’s Secret helped boost Limited’s second-quarter net. Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice- percent gain that still beat Wall President_General Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration Street’s consensus estimates of “There is a difference be- which targets a younger con- No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: 4960-2 Walker Road, Windsor, ON N9A 6J3. 25 cents for the quarter. Sales tween the softline retailers and sumer, reached 846 Victoria’s POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR rose 9.8 percent to $2.21 billion the hardline retailers, which are Secret stores by the end of the DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is from $2.01 billion, while same- reporting that their comps are second quarter. Next on the required for change of address. Please give both new and old address as printed on most recent label. First copy of new store sales jumped 9 percent. good. Maybe consumers are agenda for the intimate apparel subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, Dana Telsey, analyst at Bear, shifting what they spend their retailer is a holiday bra launch, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild Stearns, observed, “Overall, it money on. You also have to re- along with investment in upgrad- magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive was a solid quarter for Limited member that summer apparel is ed packaging and “gift-with-pur- these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. Brands.” She noted that the im- less expensive than winter mer- chase” programs for the holiday. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND provement in operating income chandise, and adults don’t buy At Bath & Body Works, the TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART at Bath & Body Works and fall apparel for themselves until company will feature a new fra- WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED Victoria’s Secret’s 7 percent September, after they’ve fin- grance in black raspberry vanil- TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. comps gain — while rolling out ished buying for their kids. We la, as well as a line of hydrother- Pink, which has been a sales also know that attendance at apy products. It is also expand- driver — are indications of a Disney theme parks is up 20 per- ing the distribution of Henri company that is doing a “very cent. After the war and then Bendel personal care from 100 good job managing the business.” SARs, maybe consumers are to 175 stores, and will begin test- Quote of the Week Telsey pointed out that the starting to travel within the U.S. ing a Provence-inspired line in slowdown in August sales is no a little bit more. That will mean 250 stores. different from the trend that less budget for apparel than in The glitch in the quarter was seems to be affecting all special- the past,” she said. Express, which is still in the “I see enormously fat ty chains. Limited’s rollout of Pink, Continued on page 14 people walking around in restaurants — and not cheap restaurants — in Gap to Launch New Credit Card Program Bermuda shorts and flip- By Ross Tucker company’s top revenue generator, with sales ris- flops with big stomachs sticking out. ing 6.7 percent to $1.6 billion from $1.5 billion. NEW YORK — Come October, Gap Inc. will be ex- Banana Republic sales rose 6.2 percent to $528 We’re in a time where people don’t panding its offerings — in plastic. million against sales of $497 million. As the San Francisco-based company reported Kinks are still being worked out, according to have much self-esteem, because how a marginal decline in earnings for the second Pressler. “At Old Navy our summer circulars were quarter, president and chief executive officer timed too close together, and we also feel we have could they go out looking like that?” Paul S. Pressler unveiled plans for a new credit an opportunity to better differentiate our market- card program, offering customers a choice of ing messages.” — Arnold Scaasi, discussing his new book newly designed Gap, Banana Republic or Old International sales continued to underperform, “Women I Have Dressed (And Undressed).” Navy cards that will allow holders to earn points falling 4.9 percent to $445 million compared with redeemable at any of the company’s stores. sales of $468 million. “The consumer proposition is simple,” said “Our strategic decision to reduce overall pro- Pressler during the call, “one credit card to shop, motional and markdown activity partially con- earn points and redeem rewards across all three tributed to the deterioration of traffic during the of our brands, including online and outlet stores.” quarter,” said Byron H. Pollitt, chief financial offi- In Brief According to Pressler, current cardholders spend cer. Pollitt also said the company closed all 10 of almost twice as much as other customers. They are its locations in Germany during the quarter. ● FLUSH TEEN RETAILERS: Pacific Sunwear of California Inc. also more likely, said Pressler, to shop at sister Despite the downturn, analysts remained con- said Thursday that its board has approved a stock buyback of an stores, with 65 percent of Gap cardholders saying fident in management’s leadership, but did note a additional $50 million worth of shares. The Anaheim, Calif.-based they also shop at Old Navy or Banana Republic. For lack of newness at Gap and Old Navy, as well as a company said it repurchased about 3.5 million shares at an aver- Banana cardholders that number shoots up to 75 late start to summer clearance activity. age purchase price of $21.30 during the first half of 2004. Pacific percent. “We see a significant opportunity to drive “Although June and July same-store sales were Sunwear said the cash expenditure won’t affect plans to open new sales by encouraging cardholders to purchase with- disappointing, we remain impressed with the com- stores in 2004 or 2005, and the company projects a year-end cash in Gap Inc.’s family of brands,” said Pressler. The pany’s margin improvement strategies, inventory balance of $150 million. Separately, Bebe Stores Inc. said it will launch date for the credit card program is Oct. 11. management and discipline,” said Goldman Sachs pay its first quarterly cash dividend of 5 cents a share on Sept. 30 While the new credit card initiative and the analyst Margaret Mager in a preview of earnings. to shareholders of record as of Sept. 9. The women’s apparel re- Sarah Jessica Parker ad campaign could be a “We believe that management’s prudent approach tailer had reported on Aug. 12 that profit for its fourth quarter, boon for fall, second-quarter results were ham- to managing its business reduces earnings volatili- ended June 30, surged 157.6 percent to $8.4 million, but it project- pered by a dropoff in sales during June and July, ty and bodes well for the long-term health of Gap ed first-quarter earnings of 16 cents to 19 cents a share, possibly as well as the company’s continued efforts to re- and its brands.” hitting below analysts’ consensus of 19 cents a share. In addition, duce its hefty debt load. The firm took a $65 million hit related to early Brisbane, Calif.-based Bebe said it expects to open 11 Bebe stores, For the three months ended July 31, the retail- retirement of debt, paying down $303 million to eight Bebe Sport stores and one outlet store in 2005. er saw earnings slide 7.2 percent to $194 million, end the quarter with $2.3 billion in debt. or 21 cents a diluted share, in line with Wall Better sales performance and lower interest Street’s consensus estimate. Comparatively, the expenses overcame early debt retirement issues company reported earnings of $209 million, or 22 for the first half. cents, in the year-ago quarter. For the first six months to date, earnings ad- Corrections Sales inched up 1 percent to $3.72 billion from vanced 22.8 percent to $506 million, or 53 cents, The name of Nicky Hilton’s licensee for her new Chick collection is $3.69 billion. Sales at Gap remained flat at $1.2 against earnings of $412 million, or 44 cents, while Benvin Industries. This was incorrect in a story on page 6, Thursday. billion while Old Navy retained its place as the sales rose 5 percent to $7.39 billion from $7.04 billion. den, Inc. by Britney Brands, is a trademark licensed to Elizabeth Ar ™ Britney Spears ©2004 EA Fragrances, Co.

Starring in fine department stores. September, 2004. 4 WWD, FRIDAY, AUGUST 20, 2004 WWW.WWD.COM

Lenny Kravitz and Sarah Jessica Parker star in the new Gap TV ads, which will debut Aug. 29. Cavalli to Sponsor Met Show By Eric Wilson NEW YORK — Since the Costume Institute is planning to show a jungle of zebra and leopard prints for its winter exhibit called “Wild: Fashion Untamed” in December, a little animal magnetism was bound to attract a designer like Roberto Cavalli. Cavalli, who makes a signature of animal print and exotic skin collages, signed on to sponsor the show on Thursday, said a spokeswoman for the Metropolitan Museum of Art here, where the Costume Institute is housed. “Wild: Fashion Untamed” is planned to open to the public on Dec. 7, with an opening party on Dec. 6. The show, or- ganized by Andrew Bolton, the Costume Institute’s associate curator, will exam- ine “humankind’s obsession with ani- malism as expressed through clothing,” according to a press release. With more than 100 costumes and ac- Gap’s New Ads: cessories planned for the show, the Met Above: Jean-Marc Nattier’s “Portrait of a Young is exploring issues of feminism and ag- Woman as Diana,” 1756, references the fur- gression as seen through the bearing woman as huntress. Below: A fake leopard Amazonian works of Alexander print gown from Jean Paul Gaultier, fall 1997. McQueen and Yohji Yamamoto, as well Parker Times 6 as the functional side of fur through its use for warmth and protection. As the By Lisa Lockwood subject matter is bound to provoke con- troversy among animal rights activists NEW YORK — If you have one Sarah Jessica Parker, why not six? — Cavalli especially has been a target Gap is taking its poster girl this fall, Sarah Jessica Parker, and multiplying her of protests by the People for the Ethical image across the airwaves beginning Aug. 29, as well as that of Lenny Kravitz. Treatment of Animals — the debate will Gap will debut its latest TV ad campaign starring the duo on the MTV Video be represented through the inclusion of Music Awards, which take place that night. The theme — “How Do You Wear It?” fake furs and advertising campaigns — is a continuation of Gap’s fall print campaign, which broke earlier this month. from PETA and other organizations. The 90-second Director’s Cut is set to an original remix by Kravitz, which In the typically playful approach consists of elements from “Lady,” his latest single from his “Baptism” album, Bolton has employed on exhibits since and his Grammy-nominated “Are You Gonna Go My Way.” As Kravitz per- joining the museum in 2002, including forms the song, Parker dances and multiplies her Gap looks six times, show- “Men in Skirts” and “Blithe Spirit: The ing the various ways Gap jeans can be worn. In the spots, both Parker and Windsor Set,” the show will extend be- Kravitz express their individuality with customized outfits that reflect their yond the scholarly approach to the so- personal style. cioeconomic implication of fur — as Directed by Francis Lawrence and developed by Gap’s creative agency, seen in historical costumes and Laird + Partners, which is based here, the TV campaign consists of a series of Renaissance nobility featured in the three 30-second spots. Following the MTV 90-second spot, the ads will air in paintings of Holbein, Titian, Rubens the U.S. on all major networks, spot markets and cable Aug. 29-Oct. 2. They and Raphael — to reach a more con- also will air on networks in Canada during the same period, in the U.K. Sept. temporary audience. Among the roster 5-29. and in Japan Sept. 13-Oct. 17. of items to be included are costumes of A teaser campaign of 15-second spots, one of which aired Wednesday night peacock feathers worn by Las Vegas on NBC during the Olympics, precedes the launch. showgirls, fur coats and alligator shoes While Gap is mum on its fall TV budget, in the second half of 2003 it spent that reference “pimp and gangster $76.6 million on TV media, including network TV, Spanish Language Network, style” and even a peacock feather cable, syndication and spot TV, according to TNS Media Intelligence/CMR. waistcoat once worn by Jimi Hendrix.

Tiffany Taps Iridesse Designers Seegal Said in Running for Nautica Post NEW YORK — Iridesse is ready to give pearls a designer spin. NEW YORK — Who is next in line for Nautica? Officials at Nautica and the rumored candidates Tiffany & Co.’s new pearl retail venture named five jewel- Sources say a handful of high-profile, seasoned could not be reached for comment. ers who have been chosen to create cultured pearl designs fashion executives have been in and out of the Nautica wants to launch women’s sportswear, exclusive to Iridesse. The designers are Erica Courtney; Nautica corporate suite here in recent weeks vying which is Seegal’s strong suit, while the other candi- Chrissie Coleman Douglas of Coleman Douglas Pearls; for a top post, probably president. Among them is dates are more associated with men’s wear and Anthony Camargo and David Nakard Armstrong of Anthony- Denise Seegal, president and chief executive offi- other categories. Nak; Christian Tse, and Gabrielle Sanchez. cer of Sweetface Fashion Co., the holding company Eric Wiseman, chairman of VF’s sportswear and “The designers were chosen because of their signature for the JLo by Jennifer Lopez clothing line. intimate apparel coalition, said last year that style and their distinguished designs,” Robert L. Cepek, Robert J. Wichser, former president and ceo of Nautica women’s sportswear would bow in 2005 at president of Iridesse, said. “We believe each designer con- JA Apparel Corp. and currently a free agent, also the earliest. Wiseman, who has been playing a big tributes their own personal interpretation to cultured has interviewed at Nautica, a source said. Wichser role at Nautica and who is very involved in the in- pearl jewelry. We feel it is important to explore the full was forced out of JA Apparel after a change in own- terviewing process, is on vacation and could not be world of design aesthetic of cultured pearls.” ership, and once served as president and chief op- reached for comment. The pearl designs are likely to be within Iridesse’s erating officer of GFT Men’s, GFT Women’s Prior to joining Sweetface, Seegal was president overall retail price points, which range from $100 to Imports, Joseph Abboud and Valentino. of Liz Claiborne Inc., president of the CK women’s about $40,000. The designs will be unveiled to the public Peter Corritori, who has held jobs in the highest and men’s divisions at Calvin Klein Inc. and was the when the first two boutiques open. The unit at Tyson’s ranks at Florsheim Group, Calvin Klein Kids and Gant founding president of DKNY. She was also with Corner in McLean, Va., is scheduled to open Oct. 8, fol- USA, also is reportedly a candidate. He left Calvin Ralph Lauren Womenswear, where for five years lowed by one at The Mall at Short Hills in Short Hills, Klein Kids about a month ago and is available for hire. she was executive vice president in charge of five N.J., opening Nov. 12. Legal entanglements, including contractual obli- divisions. She began her career at Bloomingdale’s, Cepek explained that there will be signage within the gations for certain candidates, are stalling a deci- where she rose to group merchandise manager in store to alert shoppers to the exclusive cobranded nature of sion, one retail source said. charge of designer sportswear. these collections. Other apparel executives have been contacted, Since joining Sweetface in June 2002, Seegal has As for the length of the collaboration, Cepek noted: including Jim Lewis, former Levi Strauss executive been on a tear, adding licenses and categories and “We’re unable to disclose the exact timeline, but we are and one-time group president at Liz Claiborne. transforming the label into a 360-degree brand. looking forward to a long and healthy collaboration with Nautica was purchased by VF Corp. last year, “Denise has been prancing in and out of the each of these designers.” which removed Harvey Sanders and elevated David Nautica offices for the last couple of weeks,” said a Iridesse operates as an indirect, wholly owned sub- Chu, Nautica co-founder, to ceo. For months, source. “She’s a talented, well-liked executive in sidiary of Tiffany. Tiffany plans to open at least 20 stores in Nautica has been on the prowl for a president. the industry and is a great representative for any the next five years under the Iridesse name. Chu’s contract expires at the end of 2005, and who- fashion brand.” — Marc Karimzadeh ever is president would likely step up to ceo. — David Moin NATTIER PHOTO COURTESY OF THE METROPOLITAN MUSEUM OF ART; GAULTIER BY NIALL MCINERNEY BY PHOTO GAULTIER NATTIER MUSEUM OF ART; OF THE METROPOLITAN COURTESY Star Struck. PHOTO BY DONATO SARDELLA PHOTO BY WWDEmmy Awards With Top 10 Style-Setters Issue Date: September 21 Close: September 7 WWD editors celebrate the glitz, glamour and excitement of the biggest night in television. This year, our special post-awards coverage issue predicts a whole new league of starlets – the next generation of women who will be heating up the red carpet and setting the trends at retail.

Give your brand the red-carpet treatment and prove that the stars aren’t the only ones to turn heads.

Bonus Distribution: stylists, publicists, talent agencies, studio executives, select stores, hotels and boutiques in L.A. and N.Y.

For more information on advertising, please contact Ralph Erardy, senior v.p. group publisher, at 212-630-4589 or your WWD sales representative. WWDMediaWorldwide® 6 WWD, FRIDAY, AUGUST 20, 2004 The Beauty Report Chanel: Updating a Clas

Kidman’s dash through a fictional metropolis in Chanel couture.

Continued from page one lion to $12 million a year would be spent on the Kid- because it renews the image of No.5,” said Chanel man advertising campaign in the U.S. and another $5 president Françoise Montenay. “It’s more than a million to $8 million annually to place it in Europe. perfume, it’s an icon. That’s why we need iconic The Kidman ads will appear in 39 fashion, beauty and women — and Nicole is an icon. We’ve been lifestyle magazines in the U.S. in both single-page and dreaming of her for many years. spread configurations, and are slated for cinema ad- “For us, she is the most iconic person you vertising in 25 U.S. markets, including New York, Los could ever find,” continued Montenay. “She is re- Angeles, Boston, Chicago and San Francisco. ally an actress. She can convey her emotions in Montenay said prestige is a key fact of No.5’s half a second. With just one move of her face, she position, something Chanel fastidiously measures, can make you feel something.” employing market research firms in 12 countries According to Montenay, No.5 became the best- to do so every few years. The most recent surveys selling fragrance worldwide shortly after the end confirm Chanel’s leading position. of the Second World War — and it has topped the “What we are very good at is to work with the charts in many countries since. But there is room imagination of women,” Montenay asserted. “We for improvement. It lags at No. 4 in the U.S. and make them dream.” slipped from the top slot in France, edged out by In an exclusive interview, Chanel creative direc- Thierry Mugler’s Angel. tor Jacques Helleu said Luhrmann approached the Asked how long it would take for Chanel to re- No.5 commercial just as he would a major motion coup the millions spent on producing the commer- picture, even employing the Sydney Symphony cial and buying airtime, Montenay demurred. Orchestra and his “Romeo and Juliet” collaborator, Instead, she characterized the Kidman project as an composer Craig Armstrong, to concoct a stirring investment made not only in the interest of boosting new version of Debussy’s “Clair de Lune.” sales, but “in terms of keeping the image modern.” Helleu, who oversaw the five days of shooting, The Kidman spots are also expected to have a said he was struck by Luhrmann’s perfectionism — ripple effect on other Chanel products, most of and Kidman’s professionalism in the face of it. which are on a strong growth track, she added. One might think it’s too much to ask an Oscar Privately held Chanel does not give out finan- winner to do 27 takes of a scene with hardly any di- cial information, but its beauty business is esti- alogue, but Kidman didn’t so much as flinch. “She mated to pull in about $2 billion a year. has such confidence in him,” Helleu related. While declining to provide dollar figures, The commercial is designed to reignite consumers’ Montenay disclosed sales performance by product emotional attachment to No.5 and express perfume’s category for the first half of 2004: Skin care was up sensual essence. Helleu said Kidman’s seductive pow- 28 percent; makeup, up 10 percent, and fashion ers, as expressed in “Moulin Rouge,” convinced him and accessories, up 38 percent. Fragrance lagged, she was the perfect person to represent No.5. with an uptick of only 2 percent. The spots, while in the surrealistic tradition of Market sources estimate No.5 pulls in at least past No.5 campaigns, has a strong contemporary $100 million in sales a year, and that about $10 mil- resonance, with Kidman cast as the most famous WWD, FRIDAY, AUGUST 20, 2004 7

WWW.WWD.COM

The Seduction ssic With an Icon Collection.

woman in the world, relentlessly stalked by the pa- Garden and Partners brand consultancy in Paris. “As for parazzi in a mythical metropolis. Seeking shelter from advertising, Chanel is one of the few brands that uses the flashbulbs in a waiting taxi, she finds it occupied by advertising as a consequence of already defined values, a ruggedly handsome young man who is completely un- rather than as a source for new ones.” aware of her identity and fame. Katsachnias added Chanel No.5 campaigns have He whisks her to his ramshackle garret in a sky- been expert at making classic symbols relevant in scraper topped by a double-C logo, where love quickly changing times. blossoms and Kidman’s character relishes the freedom And, in that way, it has remained evergreen. to be herself. Ultimately, after a few days of romantic “Chanel No.5 is truly a living brand with an essence,” bliss, she is discovered in her hideout and coaxed back said Jeanine Recckio, beauty futurologist at New York- to her old life and responsibilities. based Mirror Mirror Imagination Group consultancy. “It Chanel Seduction: But back on the red carpet at a premiere, the star evokes emotion and an image. It has a great story; its can feel her lover’s eyes upon her from his rooftop look- history provides wonderful credibility.” out. She looks back toward him, wistful yet stronger, Recckio said in today’s saturated fragrance market- while he vows to never forget “her kiss, her smile, her place full of gimmicky creations, Chanel No.5 offers a Building On No.5 perfume.” Then the camera focuses on the diamond- welcome change. She said it “evokes real, authentic lux- studded No.5 amulet draped over Kidman’s back. urious emotions.” “I think it’s very beautiful, and there’s a lot of emotion in “It is certainly one of the most enduring brands,” it,” Karl Lagerfeld, who designed Kidman’s costumes, said agreed Chris Cleaver, a director and one of the founding With Bath and Body of the spots. “For me, it’s like a big Hollywood production, partners of Brandsmiths brand consultancy in London. but there’s a real magic touch to it. It was faultlessly done.” He added Chanel No.5’s image renewal enables the NEW YORK — As if its ads featuring Nicole Kidman The campaign also arrives in tandem with a line ex- brand to connect with new waves of consumers. weren’t enticing enough, Chanel plans to add a little extra tension: a rose-hued line of No.5 bath products dubbed Part of its appeal, as well, is its quirky aura. sizzle to its No.5 lineup this fall. the “Seduction Collection” [see sidebar]. “Chanel always projects the brand in a sophisticated In September, the company will add the Chanel “They are very, very sensual. It’s important for No.5 way — slightly not-of-this-world, which suits the brand No.5 Seduction Collection to the beauty brand’s ancil- that we have this feeling of sensuality, and we want to that is not locked into time and space,” added Cleaver. lary offerings. The collection consists of four stock- gain market share in toiletries,” Montenay noted. Neil Kraft, creative director of New York-based keeping units, three of which are permanent additions The Kidman spots are slated to Kraftworks ad agency, said the Scott to the line and one that will be distributed for a limit- run over a three-year period. ad for Chanel No.5 — involving a ed time. Although TV and cinema advertis- woman, a plane and a swimming The three permanent additions will enter Chanel’s ing is the focus, a print campaign pool — “inspires me to this day. It 2,200 department and specialty store doors for fragrance, featuring stills and resembling was the first fragrance commercial as well as selling through gloss.com and sephora.com. movie posters will break in October that impacted me on TV. It was real, They are Sensual Elixir, a peach-tinted gel infused with magazines. true beauty on TV.” Chanel No.5, $57.50 for 1.7 oz.; Velvet Body Cream, a To be sure, Chanel has a long histo- TV commercials are key in the U.S. rich body moisturizer that contains humectants, amino ry of cinematic and fantasy-themed for brands wanting their fragrances to acids and sugar derivatives that are said to hydrate and advertising, counting Ali MacGraw, score in the top 10, according to soften skin, $75 for 5 oz., and Velvet Milk Bath, which Candice Bergen, Carole Bouquet and Olivier Van Doorne, worldwide cre- contains humectants and glycerin said to hydrate skin, Catherine Deneuve among its celebri- ative director for Select Communi- $65 for 13.5 oz. ty pitchwomen and filmmakers Luc cations in New York. He added that Besson and Ridley Scott among those while TV is generally considered a Hoehn Zimmerman noted that, who have immortalized No.5 in com- mass medium, it’s a good vehicle for mercials. Recently, Olympic-level syn- Chanel No.5 since it is “selective” yet in addition to rolling out the chronized swimmer-turned-actress “with a vast reach.” Estella Warren appeared in the Kraft added he gives Chanel cred- Sensual Collection, the brand Chanel No.5 ads. it “for trying to do something new Helleu said continuous rejuvena- each time it renews the campaigns.” is spending 100 percent more tion of the brand’s image is the key For the latest ad iteration, the to its longevity. And given the relent- Chanel No.5 bottle itself does not ap- on advertising in the second less pace of fragrance launches — pear anywhere. But there are many with more than 400 arriving on the winks to Chanel’s heritage — some half of this year compared market last year alone — stalwarts obvious, others not. Subtle references like No.5 stand out, he added. include a faded camellia — one of with last year’s totals. In the past, Chanel was known for Coco Chanel’s signatures — etched choosing up-and-coming stars to rep- onto a brick wall in the metropolis. A fourth, limited-edition product, Intense Bath Oil, resent No.5. The first of that strain And although Lagerfeld rarely inter- will be available in the brand’s 250 U.S. specialty store was Deneuve, the face of No.5 from venes in the beauty business, his cou- doors at Saks Fifth Avenue, Neiman Marcus and Bergdorf 1968 to 1976. Helleu first saw a small ture creations for Kidman are inte- Goodman. The product, which will retail for $65 for 13.5 photograph of her on the cover of gral to the campaign. oz., will be on-counter beginning in September. Look magazine tucked under some- Indeed, his friendship with Kidman In addition, Chanel will offer a Seduction Collection one’s arm. He was lured by the fact ultimately opened the door to the col- gift set for the holidays in its specialty store doors. The she had been called “the most beau- laboration. While photographing the set, which contains full-size versions of Sensual Elixir and tiful woman in the world.” Images from the campaign. actress for Interview magazine several Velvet Body Cream, will be packaged in a faux suede gift The daring Deneuve ads, in which years ago, Kidman expressed her af- box and will retail for $125. she speaks of her intimate relationship with the scent fection for Chanel, saying it was the only fashion brand she Chanel plans to support the Seduction Collection’s (Deneuve says she wears Chanel No.5 behind her knees) might endorse. Lagerfeld immediately expressed her will- launch by offering deluxe samples of its Velvet Body met with rave reviews and is credited with reviving the ingness to Montenay. After 18 months, a deal was struck. As Cream, Velvet Milk Bath and Sensual Elixir. More than brand, which had a fusty image in the Sixties. reported, it is for No.5 fragrance only, and Kidman is not 1.5 million of these samples are planned for the second An A-list, Oscar-winning actress like Kidman clearly obliged to wear Chanel for personal appearances. half of 2004, said Jean Hoehn Zimmerman, executive represents a departure for Chanel. But unprompted, Yet she was clearly in her element in Lagerfeld’s de- vice president of marketing and sales for fragrance and Montenay sought to distance Chanel from a slew of other signs for the commercial. The designer said it was very beauté at Chanel Inc. beauty firms suddenly employing big celebrities as a ploy “easy” to work with the actress, not only because of her As well, the brand in that period plans to distribute an to boost sales. “It’s totally superficial,” she said. “There is “perfect” body, but his personal, direct rapport. Two spec- additional 38 million scented No.5 pieces, including a no real link between the celebrity and the brand.” tacular dresses with trains anchor the commercial: a pink blow-in, she noted. In total, the brand plans on 46 mil- And advertising and branding experts applaud the tulle-and-feather confection that opens the storyline, and lion scented impressions for the second half of 2004, choice of Kidman.“They’ve been very good at using a black column with a plunging back for the denouement. said Hoehn Zimmerman. This number represents 75 per- iconic people to represent an iconic brand,” said Rita The first dress, a marvel of couture workmanship in cent of the sampling that the brand will do in total in Clifton, chairman of Interbrand Corp. in London. its weightlessness, billows sumptuously as Kidman’s 2004, she added. “They’ve been cool and contemporary [women],” she character, distraught amidst a tangle of yellow cabs in a Hoehn Zimmerman noted that, in addition to rolling said. As for Kidman, “She’s not the obvious beauty and billboard-studded urban square, tries to escape the pa- out the Sensual Collection, the brand is spending 100 Chanel has never been about obvious beauty.” parazzi. “You hardly need a wind machine to get the percent more on advertising in the second half of this But Clifton said the faces of No.5 and the cinematic train up when you run,” Lagerfeld says. “And I must say, year compared with last year’s totals. While she declined advertising are only part of the successful formula, cit- when she runs in that pink dress, it’s a moment.” to discuss spending totals, industry sources estimated ing synergies with the “mythology” around the Chanel Kidman was clearly pleased with her costumes. In a that Chanel will spend at least $10 million on advertising brand, its fashions, its “absolutely classic and beautiful, film outlining the making of the ads, she twirls in the and promotion in the U.S. in the second half of this year, elegant packaging” and the iconic No.5 bottle itself. pink dress during a fitting, telling Lagerfeld: “It’s a work comprising national print, TV and cinema advertising. “Chanel has managed to remain always Chanel,” of art; it’s beautiful. It has to go to a museum.” — Julie Naughton agreed Dimitri Katsachnias, a founding partner at — With contributions from Jennifer Weil 8 WWD, FRIDAY, AUGUST 20, 2004 The Beauty Report Varvatos to Make Skin Care Statement Fruits & Passion By Matthew W. Evans John Varvatos NEW YORK — Ultra-high-end, designer skin To Open U.S. Store care for men may sound like an oxymoron — but John Varvatos is out to change that. By Molly Prior The designer will introduce a men’s skin care collection, called John Varvatos Skin, in NEW YORK — Fruits & Passion has spent the better October. Varvatos hopes the 12-item assortment part of eight years cultivating its stand-alone food and will appeal to affluent 25- to 45-year-old men beauty retail stores throughout Canada, Europe and concerned about their looks, a demographic Asia. Now, the French-Canadian company, which makes that’s been helping to drive sales in one of the all the products sold in its stores, has set its sights on beauty industry’s fastest-growing sectors. expanding the concept to the U.S. market. During a recent interview at his Chelsea In 2005, Fruits & Passion expects to set up shop on showroom here — where Varvatos was jug- U.S. soil, and New York City is a favored launching gling preparations for his spring 2005 ap- ground, according to Guy Hurteau, vice president of parel collection and ideas for an eventual Fruits & Passion, who showcased his collections at the women’s fragrance — the veteran designer New York International Gift Fair earlier this week. said that even before launching his first Guy and his brother, Jean Hurteau, who serves as signature collection in 1999, skin care was president, formed the company 12 years ago with its on his mind. “I’ve just been thinking about namesake bath and body collection Fruits & Passion, an the need for it,” he said. “I watch people all offering of fruit and floral-scented bath products. Since the time and when I’m in Duane Reade, I then, Fruits & Passion has grown from one collection of see guys looking at things over in the 18 stockkeeping units to 2,000 sku’s in more than 20 col- women’s skin [care] area. In department lections of body care, home and edible gourmet products. stores, a lot of guys are a little uncomfort- Fruits & Passion stores house all of these collections able going to the women’s counter.” under one roof, and while Europeans don’t bat an eye- Within the beauty industry, there’s no lash when shopping for beauty products alongside food shortage of upscale brands catering to men, items, Americans are slower to warm up to the concept, namely Aramis and Clinique from the Estée according to Hurteau. However, some French specialty Lauder Cos. and Kiehl’s Since 1851 and boutiques are helping familiarize the idea to Americans. Biotherm Homme from L’Oréal. In contrast, Take the new L’Occitane store in SoHo, which combines while a number of designers have men’s beauty and food products, alongside a restaurant. grooming ancillaries as extensions of their fragrances, few have attempted to enter the men’s grooming arena with a separate, core collection. At least one recent entry was Jean Paul Gaultier’s Tout Beau Tout Propre, a men’s cosmetics range marketed by

Beauté Prestige International, a unit of ERICKSEN KYLE PHOTO BY Shiseido Co. Ltd. Still, that was officially system for weight loss. Zirh claims attached to his Le Male fragrance. there’s no shortage of technology in the “There’s a different customer who is John Varvatos Skin products, which are de- going to buy our product than a signed to reduce the appearance of pores, Gaultier customer,” said Varvatos. “We dark circles under the eyes, blotchiness, stand for such different things that lines and imperfections — not to mention there’s definitely room out there for it.” tighten, even, brighten and soften the skin. Positioned as anything but an ancil- Zirh is in last-minute negotiations with re- lary collection, Skin includes seven tailers to determine a launch venue for Skin. “core” products: cleanser, scrub, eye serum, facial Zirh president Brian Robinson expects to introduce the moisturizer, shaving cream, shaving gel and post-shave assortment in eight to 15 doors initially — either via a A newly opened Fruits & Passion store on Paris’ Rue de Rivoli. cooling gel. There are five more specialty products: launch at one “key” specialty retailer, he said, or by way Pore Refining Mattifier, Face Revitalizing Gel, Even of a regional distribution model with several retailers Fruits & Passion outlets are certainly making a Tone Skin Cream, Multi Vitamin Facial Serum and a in different markets. A deal could come within the next name in Europe and beyond. To date, the company has concealer. The assortment will range in price from $26 two to three weeks, Robinson said. Varvatos’ four stores 92 such stores under the Fruits & Passion banner in to $75, making it more expensive than many upscale in the U.S. will carry the line. countries such as France, Switzerland and Korea. This men’s grooming brands. John Varvatos Skin could generate $2 million at past spring, Fruits & Passion opened a 1,830-square- Moreover, Varvatos said he’s the first designer to retail in its first year, according to industry estimates, foot boutique on Paris’ Rue de Rivoli and plans to end do a men’s skin care collection this complete and starting what Varvatos and Zirh are hoping will be a the year with 100 stores, opening at a rate of two to technologically advanced, featuring formulations de- gradual building process. “Skin care is a slow build,” three stores a month. The retail stores account for 70 veloped by Shiseido. The Tokyo-based cosmetics said Robinson, who also presides over the men’s percent of company sales. giant owns 79 percent of Varvatos’ licensee for the grooming brand called Zirh and FCUK’s fragrance While Fruits & Passion has yet to bring its stand- line, Zirh International Corp., which introduced brand. For Zirh International, the Varvatos brand alone store concept to the States, its numerous collec- Var vatos’ inaugural scent earlier this year. represents the stratosphere of retail distribution, tions are sold in 1,500 specialty stores and high-end de- To be sure, John Varvatos Skin is an uncommon while the Zirh brand is in limited upscale depart- partment stores in the U.S. market, namely step. As opposed to concentrating on a full-fledged ment store distribution and the French Connection Anthropologie, Nordstrom and Henri Bendel. men’s skin care collection, “What we’ve seen with de- scents are in wider department store distribution. Industry sources estimate the company generates signers is typically they [only] go from fashion to fra- Plans call for the launch of five more John Varvatos some $50 million in annual sales, with the U.S. account- grance,” said Timra Carlson, president of NPD Beauty, Skin products next year, when the collection could be car- ing for approximately 25 percent of that business. which tracks sales and trends in the industry. Other ob- ried in as many as 80 to 100 doors, according to Robinson. The company also churns out a slew of specialty col- servers speculate men’s skin care would be a difficult Var vatos’ first fragrance, a men’s scent that was lections at a fast clip — ranging from body care to home thing even for a high-volume, widely known designer to launched at Saks Fifth Avenue in early March, is re- care. Its newest collection is Cucina Dolce, an Italian do, let alone a young fashion label in limited distribu- portedly running 66.8 percent ahead of plan on average dessert-inspired offering of soaps, candles and home tion of about 130 doors worldwide. across Saks Fifth Avenue, Marshall Field’s, Sephora, fragrances in scents such as Fresh Cream, Nutmeg and In any event, a picture of the consumer who will Nordstrom, Macy’s West and Parisians. While the fra- Orange Zest, Hazelnut and Espresso. Cucina Dolce, an spend $75 on a bottle of designer face serum has yet to grance was originally projected to do $5 million in first- outgrowth of Fruits & Passion’s Cucina line of kitchen emerge. While the men’s grooming arena is hot in both year retail sales volume, sources indicated it was ap- and hand care products, earned recognition as “Best the mass and prestige markets due to a number of fac- proaching $2.2 million after four months. Product Overall” at the Ex-Tracts trade show in New tors — stepped-up vendor marketing initiatives, more Var vatos believes beauty is an integral part of his York City last March. Items in the collection range in editorial coverage of the category by existing and new four-year-old “lifestyle” label, which, sources estimate, price from $3 to $50. men’s consumer magazines and retailer support — some has a total wholesale volume of $30 million a year. He A sampling of the other collections include, Human, marketers contend guys are hesitant to buy expensive would like to launch his first women’s scent next fall, on a men’s and women’s bath line that includes a unisex grooming products. But others say men aren’t afraid to the heels of his first women’s wear collection, which is fragrance; Somnea, a sleep-enhancing line of tension- part with a buck if they perceive efficacy from a product. going into stores this week. Varvatos thinks his fra- taming bath and body products, and Art Home, a It’s the latter consumer Varvatos is betting on. grance and treatment businesses could account for kitschy, retro-looking line of household care items. “[Skin] is really geared at an upscale customer who more than 10 percent of John Varvatos as a company by The company strength, said Hurteau, has been its is already into luxury,” the designer remarked, “the year-end, a number that he feels could grow to repre- ability to create collections with unique positioning and guy who’s very discerning in terms of what he uses. sent 20 percent of the business after another four years. packaging that work together in the same retail envi- He may be using Neutrogena right now and say, ‘I’m “It’s not about what we call in the apparel industry ronment, whether in a Fruits & Passion store or a de- going to try John Varvatos and see what it’s like.’ ” ‘the stack-’em-high-let-’em-fly philosophy,’ where you partment store. Shiseido is known for its strides in research, ef- just put a lot of goods out there in a lot of stores,” he The company’s creative team, a department of 30 peo- forts that have included ongoing collaborations with said of beauty. “That’s not our long- or short-term goal.” ple, has five more collections in the works for next year. Harvard Medical School and Massachusetts General “They are the locomotive that drives this company,” Hospital, as well as the development of at least one Editor’s note: Men’s Corner is a new regular feature commented Hurteau. concept that purports to employ the human olfactory focusing on the men’s grooming market. WWD, FRIDAY, AUGUST 20, 2004 9

WWW.WWD.COM Fashion to Drive B-T-S Beauty Sales SNIPPETS NEW YORK — Back-to-school shopping list: jeans, pleated skort, argyle vest, rep-tie belt, notebooks, GIFTABLES: At this week’s New York International Gift Fair, several lip gloss and shaving cream. standouts were seen. There was Italian Baronessa Consuelo Cali, who Beauty retailers are riding on the coattails of showcased her expanded olive oil-based bath and body collection, the fashion industry this year, hoping shoppers Oliva. It now includes 11 “scents of Italy,” such as Lavender, Rose will buy cosmetics and toiletries along Water, Neroli, Vanilla Floral, Tomato Floral and Tarocco Red Orange. with school supplies. “There’s not a lot Cali is reportedly in talks with Hollywood producers about a television of newness in beauty, but there is in show with a plot that hinges on her title as “baronessa.” To date, no fashion. So beauty marketers are deal has been signed. Then there was Primal Elements, an eco- linking with apparel,” explained friendly manufacturer of handmade vegetable-glycerin soaps, which Wendy Liebmann, president of WSL aims to clean up politics with its Democrat and Republican soaps. Strategic Retail. While both soaps are formulated with a spicy cola nut fragrance, each Mass marketers plan on a robust sports its own mascot surrounded by blue and red stars. The back-to-school selling season, and beauty bipartisan soaps will be available at specialty retailers and will sell suppliers hope that will include impulse from $6.50 to $9. cosmetics purchases. Back-to-school spending is second only to Christmas. According to the National Retail Federation, sales are expected to top the $40 Stash box, CRL’s billion mark this year. A study from NRF found gift-with-purchase, that families plan to spend an average of $483 available at Longs. this year for children in grade school and high school, up 7 percent from $450 last year. legs to complement fashionable short skirts. With all of the customer traffic in stores, mer- Target also tied in beauty necessities with b-t-s chants want to tempt shoppers with impulse beau- shopping in its ad. Products including Biore, Almay Primal Elements’ soap should appeal to Democrats and Republicans. ty buys. Many are erecting b-t-s displays featuring Nearly Naked and Suave hair care items are posi- SPA WITH A NAME: Spa Chicks On-The-Go, a full-service mobile beauty items. tioned next to backpacks and calculators. At Eckerd, spa and event company in Manhattan, now offers private label spa Kohl’s is using the sales period to introduce its coupons are featured in the school ad for $2.00 off event services, enabling beauty, wellness and lifestyle companies new everGirl collection, which includes beauty Revlon cosmetics and for a buy one, get one free deal to personalize product launches, store openings or trade shows. products from Townley. The ad- on all L’Oréal face products. Company branding can be reflected with logos on customized vertisements show personali- Longs Drug Stores is taking uniforms or T-shirts; signage reflecting the client company’s logo ties of the four types of girls the a different tactic. Rather than and image; use of spa products or services related to the company, collection appeals to and ap- Critical Mass associate beauty with school and educating spa staff on the history and mission of the company propriate beauty products. For By Faye Brookman needs, the chain is extending for better customer interaction. example, the character identi- a beauty name into general Spa Chicks program directors also create a budget according to fied as a “dreamer,” an aspiring merchandise. The drugstore the client’s needs, and can even customize designs, plan logistics, rock star, has a lip gloss packaged in a guitar shape. chain is expanding its popular exclusive beauty provide a cost analysis and recommend appropriate treatments for EverGirl is promoted on Nickelodeon, and its line Yakity Yak into stationery, backpacks and the event. Spa Chicks generally offers manicures, pedicures, facials, message is apparently reaching the audience. “I was binders. The new items will bear the same logo as reflexology, chair massage, table massage, airbrush tanning, body planning on taking my daughter to Bloomingdale’s the cosmetics. Yakity Yak cosmetics was created by treatments and hand/foot treatments, and the service provides all for back-to-school clothes,” said a Long Island moth- CRL Marketing and is aimed at consumers 13 to 25 equipment and supplies needed for each treatment. er. “She asked that we go to Kohl’s instead because years old. Longs has the proprietary rights to the The company tested out the concept in May in Bryant Park for they have everGirl.” name west of the Rockies. In back-to-school ads, a spa lifestyle company, and it has hosted nonbranding spa parties Another popular marketer for young girls, Longs is offering a free Yakity Yak product with for Bobbi Brown, the In Style magazine staff and the NY1 News Delia’s, features advertisements for products such the purchase of stationery items. staff. The average event costs about $3,000 for four therapists for as Skintimate shaving cream and Stridex acne According to Jesse Lawrence, president of CRL, four hours. Spa Chicks launched in January. medication in its b-t-s mailer. Skintimate is fea- Yakity Yak has provided Longs with an exclusive tured in fashion layouts as a way to achieve silky brand with strong turns — at least three times the BRUSHING UP: Manhattan hairstylist Julien Farel is creating a signature normal turns in most stores — and high gross line of styling brushes to help make home blow-outs as good as what margins. The products are merchandised on you get in his salon. The brushes will be designed by a manufacturer an illuminated display that helps to differenti- based in L’Oise, France, a town Farel said is renowned for high-quality ate Yakity Yak from other brands, he said. hairbrushes. Exotic redwood handles are triangular-shaped and hand- Lawrence is also working with other compa- carved, and they feature unevenly cut boar bristles to make sure hair is nies to expand the name into related prod- gripped at the root. Brushes will be available at the salon and from ucts, such as cosmetics bags. Farel’s Web site, julienfarel.com, and range from $35 for a round, extra- At Longs, CRL is offering its first gift-with- small boar bristle brush to $60 for a round, extra-large one. purchase promotion. Along with the sale of a beauty product, shoppers can get a hard plas- BREAST FRIEND: Italian skin care firm Dibi is launching DibiBody tic container called a Stash box. The boxes are Tonic Skin Firming Breast Cream, a light active cream designed to also available for purchase at $1.99. “We’re re- firm and tone the breast area. Hops, hydrolized silk and thyme ally trying to offer unique items that build loy- extracts are the cream’s active ingredients, which aim to protect skin alty to our retail partners,” said Lawrence. from degenerating. It is recommended for pre- and post-pregnancy Other retailers outside of Longs’ trading use, weight loss and pre- and post-cosmetic surgery. The cream will area are picking up Yakity Yak. Sally Yanke, retail for $50 for 8.45 ounces. Dibi will donate 40 percent of the director of cosmetics for Medic Drug in cream’s proceeds during October to breast cancer research. Cleveland, is among those impressed with the line. “The fixture allows for the product color SALON SAVVY: Three of Robanda’s most popular retail antiaging to show through, and it isn’t loaded with in- skin care items are expanding into back bar sizes. Now available to ventory,” she said. salons are Facial Cleansing Lotion, Balancing & Hydrating Toner Back-to-school sales could serve as a har- and Massage Cream/Moisturizer. binger of what is to come for the holiday sea- Robanda is also launching a new product, Pore-Refining Mask, son. A strong sales push could portend a which is a clay-based mask designed to absorb impurities and Yakity Yak nail polish. much needed robust Christmas. excess oil. Pore-Refining Mask will retail for $24 for 4 oz. AKITY YAK AND STASH PHOTOS BY ROBERT MITRA ROBERT PHOTOS BY AND STASH AKITY YAK Y

regional salespeople who will distribute product samples and offer makeovers, demonstrations and coupons to passersby. Duane Reade on Path to Beauty Gary Charboneau, executive vice president of Duane Reade, said Pathways is a great venue for the chain to expand its consumer base in the metropolitan New York area. NEW YORK — Duane Reade has joined the roster of health and beauty companies “It will reach thousands of women. The show is also a good way for Duane exhibiting at the consumer beauty show Pathways to Beauty & Well Being. Reade to introduce women to our selection of beauty products. We are very excited The region’s largest drugstore chain will feature many of its beauty vendors to be part of such an event,” Charboneau said. within its 1,200-square-foot pavilion at the first-of-its-kind show, slated for Sept. 10- Other retailers planning to exhibit at Pathways are J.C. Penney, Sephora and 12 at the Jacob K. Javits Convention Center here. Tens of thousands of consumers Whole Foods. are expected to attend the event to learn about the latest products and technolo- Duane Reade plans to aggressively promote its pavilion and its involvement gies in beauty, personal care, nutrition and health, fitness, active living and per- with the show in store circulars. sonal growth. For a $15 admission, attendees will have the opportunity to meet In other Pathways news, Sephora will conduct custom makeovers for women of face-to-face with approximately 150 exhibitors. The show is also offering about 100 all ages, using products by Nars, Smashbox, Bare Escentuals, Benefit, Too Faced, educational seminars on a variety of women’s issues. Urban Decay and Sephora Collection. Seminar tickets admit one to the makeovers, Revlon, Del Labs, Markwins, Maybelline, Iman and Coty have all been contract- which will take place each day of the show. ed to participate in Duane Reade’s pavilion. These vendors will be represented by — Andrea Nagel 10 WWD, FRIDAY, AUGUST 20, 2004

The HBA Report WWW.WWD.COM Almay Steps Into Specialty Bath By Molly Prior A number of brands have put elbow grease into reviving category growth, such as Coty NEW YORK — Almay, the skin-conscious sister Beauty’s retooled The Healing Garden line brand to Revlon, aims to freshen up the spe- and the recent entry of White Rain’s Te Tao. cialty bath category with the introduction of a But despite this flood of newness, special- spa collection this holiday. ty bath continues to experience soggy sales. Almay will launch the collection of seven The category dragged more than 6 percent to gift sets exclusively in Target and Walgreens $95.4 million in the food, drug and mass stores this October, and then expand its distri- channel (excluding Wal-Mart) for the 52- bution to all of mass at the start of next year. weeks ended July 11, 2004, according to Infor- The gift sets — featuring a varying assortment mation Resources Inc. of spa items such as body wash, body lotion, The Almay collection aspires to build a body mist, loofah, bath salts and a fragrance bridge between the burgeoning day spa trend stone — range in price from a $9.99 chrome and the specialty bath category, declared Kells. bath caddy to a $14.99 balsa box. He noted that Almay’s spa collection Almay spokesperson Elaine Irwin- departs from the category’s current flavor- Mellencamp will unveil the spa collection at the driven strategy. “There is an oversaturation of opening party of the Telluride Film Festival, fruity and floral scents in this category,” com- which kicks off Sept. 3. Almay will also set up a mented Kells. The Almay collection relies on spa, called Almay Oasis, at the festival. The spa, two naturally derived fragrance stories: a located on Telluride’s main drag, Colorado holistic thai and lily scent called Relax, and a Avenue, will be staffed by aestheticians from lemongrass and mint scent called Rejuvenate. the Golden Door spa at the Wyndham Peaks “Consumers are looking for a product mix Resort in Telluride, Colo. that is upscale and has prestige branding at Almay’s entrance into specialty bath marks the mass level. And that is really what’s miss- the brand’s first strategic movement to ing in the specialty bath category,” said Avery expand outside its core cosmetics offering, Kaufman, vice president of sales and market- explained Kevin Kells, vice president of mar- ing for Burlington. keting for Almay. Following Target and Walgreen’s exclusive “We are looking at ways to better connect holiday window, Almay will begin rolling out with our consumers,” said Kells, adding, the collection as individual stockkeeping units “We’ve done a lot on the looks side with cos- Almay will launch its spa collection as gift sets in Walgreens and Target stores. to retailers’ bath planograms next spring. The metics, so now we’re dialing up the feeling initial launch on this front includes core spe- side of the equation. The spa collection was an cialty items such as body lotion, body wash and obvious next step.” a body mist. True to Almay’s healthy beauty her- Industry sources estimate that Almay’s spa itage, products are formulated with mild ingre- line will generate approximately $5 million at dients, such as aloe vera, silk and oat protein, retail in the first year. and are infused with antioxidants and vitamins. The collection aims to bring what Kells Once consumers have acquainted them- calls a “luxury sensibility” to the mass chan- selves with the line, Almay will introduce nel and, in doing so, build an emotional con- more benefit-driven products, such as a firm- nection with consumers. ing body serum, containing ingredients such To create the line, Almay recruited licens- as glycerin, evening prim rose oil and olive ee Burlington Toiletries, maker of private oil, explained Kaufman. label bath products for retailers such as Wal- Almay is intent on growing its brand, and Mart, Target and Walgreens. already has another category extension in the While business might be booming in day works for next year, reported Kells, who is spas, the sector’s growth has yet to translate to currently keeping details of that launch close the specialty bath category in the mass channel. to the vest. Beauty Max Hits It Big With Flat Irons By Andrea Nagel sional quality, not designed like the mass market [irons]. They have a low default rate, less than half of NEW YORK — A flat iron for $500? That’s the going rate 1 percent come back as defects. The ones sold at for the latest heated wand equipped with ionic technolo- Target, Bed Bath and Beyond and Wal-Mart are dis- gy and an integrated ceramic heating system. The high posable-type items and are not meant to last.” Conair price tag is sure to add nicely to the category’s current $1 and Helen of Troy dominate the mass market flat iron billion sales figure, one that five years ago didn’t register arena, where irons generally retail for around $25. a blip on radar screens. Beauty Max looks to end 2004 with $50 million in Indeed, these instant hair de-frizzers have become a retail sales from the sale of nearly 120,000 irons inter- necessity in just about every salon and home bathroom nationally. And the company has only just got its feet internationally. Best known for taking the frizz out of wet. In July, Beauty Max increased U.S. distribution to Beauty Max’s FHI hair in just one fell clamp and swoop, results from flat nearly 10,000 units a month. irons send women across the world into straight-hair A new deal with Hair Tools, a leading distributor in Ceramic Ion Styling Iron. bliss. Sales of these little wonders are currently led by the U.K., commenced this month, in which it will take Farouk Systems of Houston, according to industry on Beauty Max’s FHI model. The partnership looks to ic, has a patent pending. “It’s at least two to three sources, which claims a little more than half the mar- add close to $100 million in retail sales to Beauty years ahead of its time,” said Janse-van Vuuren. The ket’s share. Behind it is Hair Art Information, a San Max’s top line in 2005, said Janse-van Vuuren. new irons, called The One, are expected to hit retail- Diego-based firm. Naturally, company executives have high hopes for the ers in September. There are two formats: The One, However, Pieter Janse-van Vuuren, international future of flat irons and look down on other heat imple- which targets the professional market and will cost sales director at Beauty Max, the third largest manu- ments. They go so far as to say that in the next two to five $500, and The Limited Edition, which is for both salon facturer of flat irons, said that is promising to change years “everyone will throw out their curling irons.” professionals and retail, which will cost $399. in the next few years. But doesn’t Kim keep up on style trends? If he did, Apparently demand for the irons is already in- The 10-month-old company, based in Cleveland, he’d know that straight hair has been “out” for more credible. At ethnic product maker Bronner Brothers’ began distributing its five-stockkeeping-unit product than a year. trade show this week in Atlanta, Janse-van Vuuren line to the U.S. and U.K. early last year. Beauty Max That detail, he said, is inconsequential to his business. sold several dozen of the high-priced irons. “People makes two brands. There’s the FHI, which is designed “They’re like a set of shears,” Kim explained of his who really didn’t have the money to spend found for professionals and salon retail; it sells from $99 to products. “They’re heat styling irons, not flat irons. some so they could have one.” $169. Then there’s the lower-priced H2Pro, which is You can flip, twist, make dreadlocks, do pin curls and Kim and Janse-van Vuuren continue on their road sold through regional beauty supply stores and ranges barrel curls with it.” show this week, with the next stop being at The in price from $49 to $129. Both are designed around Kim discovered just how hot the heating imple- Premiere, a professional beauty show, also in Atlanta. ionic technology, which Beauty Max president and ment category was while analyzing what was driving There the two will officially launch their new products chief executive officer David Kim said is 20 times sales at his parents’ over-the-counter ethnic beauty to the industry. more efficient at heating than competitors’ irons. supply stores in Cleveland. And he is constantly on the “We’re just spreading the gospel, from stylist to dis- The Beauty Max iron’s heating element is twice the prowl for what else will take the category by storm. tributor and through our platform artists.” Their combi- size of competitors’ elements, and it is coated with a One of the company’s newest technologies, which nation of grass-roots public relations and heavy- hitting thicker layer of ceramic, Kim said. “They are profes- has the ICHS as opposed to a heater under the ceram- distributor deals may just get them where they want to go. PHOTOS BY ROBERT MITRA ROBERT PHOTOS BY WWD, FRIDAY, AUGUST 20, 2004 11 WWW.WWD.COM Media/AdvertisingX

blessing and a curse. George Sansoucy, senior vice president and managing director of print and convergence at Initiative, a leading media buying agency, said, “Marketers MEMO PAD with limited budgets, who have a vertical approach, may fall out and choose to reinvest their dollars elsewhere. At the STOUT OF HEART: Has GQ started doing product same time, the move could broaden the group of advertisers placement? Some readers might get that impression from the Times is targeting. A good many advertisers are the September issue, which features a tweed-clad Justin attracted to horizontal, general-interest outlets.” Timberlake on the cover holding a bottle of Guinness, its So far, advertisers are responding positively to Tonchi’s label pointed bang-on at the camera. The spread changes. The first issue of T, which is perfect bound, carries accompanying the cover story, shot by Bruce Weber, 167 ad pages, more than any New York Times women’s contains four more photos of the singer and his stout (as fashion magazine in almost 20 years. — Sara James well as two in which he clutches a flask of Jameson’s whisky). And in deputy editor Michael Hainey’s article “A NEWSOM TWOSOME: Buzz — even bad buzz — can sell Beer with John Kerry,” the presidential candidate declares, magazines. But what does magazine buzz do for someone’s “Here’s to Guinness… I love Guinness. This is one of my political career? Well, San Francisco Mayor Gavin Newsom Two images from W’s Image and Art program. favorites.” Um…what gives? “It was the two-Guinness and his wife, Kimberly Guilfoyle Newsom, are finding out. J Pliner, Mac and Jac and Georg Jensen — and asked each issue,” quipped Jim Nelson, editor in chief of GQ (which, The September issue of Harper’s Bazaar features a to choose from among 20 up-and-coming artists. The like WWD, is owned by Advance Publications Inc.). But saccharin-coated profile of the couple, who Bazaar calls chosen artists were then instructed to interpret the seriously, folks: Nelson said it was Weber’s idea to show “The New Kennedys.” But when photos from the shoot, marketer’s brands with a work of painting, photography, Timberlake drinking Guinness as part of the shoot’s Irish including an awkwardly posed shot of the Newsoms lying etc. The resulting pieces will be displayed on kiosk posters theme (even if the photos spoon-like on a carpet in the Getty mansion, began making beginning Sept. 6 in Bryant Park, with an official unveiling were taken at the old the rounds in San Francisco last week, gossipy social types to be held Sept. 8 at the Phillips, de Pury & Co. gallery. W Warhol estate in Montauk). — not to mention the mayor’s political detractors — publisher Alyce Alston said the program helped drive over It just so happened, he couldn’t help but titter. The talk culminated in a cartoon $2 million in ad revenue this year. In exchange, W will pick said, that the best picture spoof by Don Asmussen in The San Francisco Chronicle, up the tab for the 66 kiosks, which will represent 95 from the shoot was one in which ran on Aug. 11. The caption reads, “All of the percent of the ad real estate around the shows. “What I which the Guinness logo goodwill that Mayor Gavin Newsom had built with his think is so cool is the marketers basically gave the artists was displayed prominently. position on gay marriage is LOST when oddly posed photos room to create, and whatever they came back with is what “I had a moment of, well, is from his upcoming Harper’s Bazaar profile are leaked. An you see,” Alston said. — J.B. that weird? And then I embattled Newsom tries to deny any involvement...” A didn’t care,” said Nelson. bubble linked to Newsom’s head says, “I am not a poseur!” NEWSPEAK AND THE SINGLE GIRL: Cross conservative For the record, Guinness is The couple, who was reported to be in Greece for the columnist William Safire with “Sex and the City” creator not an advertiser in GQ. Not Candace Bushnell and what do you get? Try Dany Levy. The yet, anyway. — Jeff dailycandy.com founder will pinch-hit for the vacationing Bercovici GQ’s September issue. Safire this weekend in the “On Language” column of The New York Times Magazine. Levy’s article is a lexicon of THE TIMES T’S OFF: The New York Times is heading back to neologisms coined by “young urban female hipsters” — the monthly magazine business. First came the including herself and her staff. Entries, most of which have consolidation of the Times’ eight style supplements to been featured in dailycandy.com’s e-mail newsletter, form the new T magazine, which debuts in the Aug. 29 include stray (“n. A heterosexual male who everyone paper. Now, WWD has learned that editor Stefano Tonchi secretly thinks is gay”) and teenile (“adj. Used to describe will also assume control of the quarterly Sophisticated someone who is way too old for what she is wearing.”) Traveler next year and will expand the T brand into a San Francisco Mayor Gavin Newsom and “There are so many phenomena that lack a word to describe monthly lifestyle magazine by 2006. “We could not make his wife, Kimberly Guilfoyle Newsom. them,” said Levy, who has published similar articles in the changes immediately when I arrived because there Allure. “And I can almost guarantee you that none of them were advertising and printer contracts in place,” said Olympics, could not be reached for comment, though an aide are in the OED [Oxford English Dictionary].” — J.B. Tonchi, “but I hope in one year, T will be a monthly in the mayor’s office said Newsom was amused by the spoof magazine received on the same day each month and will and then quickly recanted his comments. Meanwhile, Leah COSMO’S BODY BAGS: Don’t be surprised if Kate White’s latest have a little of everything in every issue.” Which means Garchik, a reporter for the Chronicle who wrote about the Bazaar mystery novel has the word “bitch” in the title. Earlier this women’s and men’s fashion, design, food and travel, as story and the resulting flack, said, “I think that a number of week, the Cosmopolitan editor in chief-cum-crime writer, well as beauty and grooming, which weren’t previously people will look at that spread and think, ‘Wow, what a who’s fond of cover lines like “How to Beat Those Man- covered, will co-mingle in the front-of-book and the well. glamorous and beautiful couple, the perfect pair to represent Nabbing Bitches at Their Own Game,” hinted at a similarly Holly Brubach, creative director for Canadian jewelry company our sophisticated city.’ And a number of people will look at that racy title for her newest Bailey Weggins book, which will hit Birks who edited the Times’ style magazine in the late Nineties, spread and think, ‘Whew, how could they be cavorting on a stores next summer. While hosting a dinner at The Harrison said Tonchi is thinking “in terms of the big picture. This is a millionaire’s carpet while homeless are sleeping in doorways?’ in TriBeCa to celebrate Cosmo’s first13th issue, White also diverse audience — male, female, in terms of age, professions. Not many people will be neutral, but I think most San introduced her novels’ aide-de-camp. Barbara Butcher, the Linking things for them is interesting. It takes a step back and is Franciscans will acknowledge that he’s really dug into some of director of investigations for the New York City Medical broader than just presenting product for sale.” the city’s long-standing problems; if he cleans up well after Examiner, has had a regular lunch date with White for the For advertisers, that broad approach could be both a doing that dirty work, so much the better.” — S.J. and J.B. past three years, wherein they gab, gossip and discuss the intricacies of executing unsolvable murders. “A police TAKING COVER: Suede magazine’s inaugural cover shoot detective put us in touch,” said Butcher. “Kate was looking with singer Alicia Keys may go down as New York’s most for someone to consult on the books, and he told her, ‘When security-intensive event of the summer next to the it comes to death, Barbara Butcher is it.’” Republican National Convention. A number of guards After their ladies’ luncheons, Butcher periodically checks were on duty at Industria Superstudios in the West Village, in with White, sometimes going as far as to fax over sketches sources said, and editor in chief Suzanne Boyd was even of fictional crime scenes to help White understand, say, the spotted being trailed by two large men in suits. While it’s type of scuff marks one would find on someone who’d been normal to hire a guard or two to watch over expensive pushed from a SoHo rooftop. “One minute I’ll be sitting at pieces of jewelry, security at the Suede shoot was heavier my desk looking at the new Prada skirt,” said White, “and than average, in part to keep paparazzi at bay during the next, it’s a sketch of someone being hurled over the side outdoor scenes. But there was also People for the Ethical of a building. It gives you such confidence to know that Treatment of Animals to think about: Earlier this year, someone of [Butcher’s] caliber is working for the city.” after Essence announced its fashion spinoff would be Unless you count invites to glitzy magazine events, called Suede, the animal rights group complained about Butcher doesn’t receive a consulting fee for her work, the name in a letter to Essence chairman Ed Lewis. But which, she assured WWD, “is not done on city time.” This the magazine’s shoot was without incident. — J.B. week, she did, however, take home a rather large, rather heavy duffel bag — full of shampoos and body creams — ART AND COMMERCE: It’s the quintessential Fashion Week as did fellow guests designer Shoshanna Lonstein-Gruss quandary: How to stand out in a crowd where everyone else and Diane Neal from “Law & Order: SVU.” The reason for is trying to do the same? This year, six fashion marketers the generous gift bags? According to early scan data, have found what they think is a novel way to make their Cosmo Style is on track to exceed its 1.5 million rate base presence felt, with the help of W magazine (which, like by 200,000 copies. And yes, that’s a copy of White’s “‘Til WWD, is owned by Fairchild Publications Inc.). W took the Death Do Us Part” peaking out from the covers in the six marketers — Ellen Tracy, Tse Cashmere, Kwiat, Donald The New York Times’ T cover. fashion story on page 117. — S.J. 12 WWD, FRIDAY, AUGUST 20, 2004 WWW.WWD.COM Nordstrom Earnings Surge 62.3% By Vicki M. Young

NEW YORK — The second quarter was very good for Nordstrom Inc., but not good enough for Wall Street. On Thursday, the specialty chain’s quarterly profits skyrocketed 62.3 percent while gaining 88.9 percent for the six-month period. However, while the retailer earned 75 cents a diluted share and beat its own guid- ance at the high end by 1 cent, it still missed Wall Street’s consensus esti- mate by 2 cents. Income for the three months ended July 31 came in at $106.9 million, or 75 cents a diluted share, compared with $65.9 million, or 48 cents, last year, while sales rose 9.3 percent to $1.95 billion from $1.78 billion. Same-store sales showed a gain of 6.8 percent. The company said color, newness and fashion drove strong, regular-price selling across all categories. The retailer’s profit rose 180 basis points be- cause of strong sell-throughs, which in turn resulted in lower markdowns. “We just completed another good quarter and are on our way to another year of strong performance,” said Blake Nordstrom, president, during a A $75.5 million charge and soft call to Wall Street analysts. sales sunk Wet Seal profits in Nordstrom said for four years, the company has focused on improving lo- the second quarter. gistics in connection with inventory levels and merchandise-related opera- tions. But the president was quick to point out that Nordstrom was “careful not to get too comfortable or spend too much time dwelling on the past.” Aeropostale Flies Higher While Nordstrom profits were up, it failed to meet As Wet Seal Dives Lower Wall Street’s estimate. By Arthur Zaczkiewicz

NEW YORK — For Aeropostale, the second quarter blossomed as the teen retailer lever- aged its merchandise mix and operational prowess to deliver textbook- perfect results. But for Wet Seal, it was a quarter management might prefer to forget. Wet Seal Inc. took a $75.5 million noncash charge that relates to deferment of tax assets, “which principally consists of net operating loss carry-forwards for federal and state pur- poses.” It also includes store-level impairment charges. So, for the quarter ended July 31, Wet Seal said the operating loss came in at $102.8 mil- lion, or $3.20 a diluted share, which compares with a loss of $13.4 million, or 45 cents, in the prior year. Sales for the quarter fell 13.9 percent to $105.6 million from $122.6 million. The loss for the six-month period was $123.1 million, or $3.95 a share, which compares with a loss of $21.9 million, or 74 cents, a year ago. Sales dropped 15.4 percent to $205.4 million from $242.8 million. So far, replenishment and markdown capabilities have yet to be fully For the second quarter, the operating loss swelled to $27.1 million from a loss of $18.5 optimized. This is next on the company’s agenda, and once completed, is million in the prior year. expected to boost efficiencies as well as sales and margin gains, In the report, the firm said the board set up a committee to “analyze appropriate alterna- Nordstrom said. tives to enhance shareholder value.” The company is also looking to hire a financial adviser. Executives on the call said the bulk of the retailer’s earnings occurs in Aeropostale Inc.’s second-quarter results, meanwhile, achieved benchmark status with the back half of the year. strong sales, higher gross margin rates and robust earnings. The stellar performance was done Separately, Nordstrom’s board approved an 18 percent increase in the on a larger store base, but on significantly lower selling, general and administrative costs. quarterly dividend to 13 cents a share. Net income for the quarter ended July 31 swelled 297.4 percent to $10.9 million, or 19 For the third quarter, the company is expecting earnings per share of cents per diluted share, from $2.7 million, or 5 cents per share, in the prior year as sales between 35 cents and 40 cents on a comps increase of between 1 and 3 per- jumped 50 percent to $194.9 million from $129.9 million. Same-store sales shot up 20 percent. cent. Full-year expectations is between $2.46 and $2.50 a share on comps Julian R. Geiger, chairman and chief executive officer, said in a statement that during gains of between 4 and 6 percent. the quarter the retailer was “able to perform at a high level and achieve record sales and For the six-month period, net income jumped 88.9 percent to $175.6 mil- earnings because of the ongoing strength of our brand, our merchandise assortment and lion, or $1.23 a share, from $93 million, or 68 cents, last year, while sales our continuing dedication to improving execution.” gained 11.8 percent to $3.49 billion from $3.12 billion. Comps for the period Stores opened at the end of the quarter stood at 521, which compares with 427 in the same rose 9.5 percent. period last year. The gross margin rate jumped to 30.5 percent in the quarter from 27.4 per- During the quarter, Nordstrom operated 93 full-line stores, 49 cent in the prior year while SG&A as a percent of sales fell to 21.5 percent from 24.1 percent. Nordstrom Racks, five U.S. Façonnable boutiques, one freestanding shoe “Our ability to translate significant top-line growth into meaningful operating margin store and one clearance store. A full-line store is expected to open in expansion underscores the advantages of our unique operating formula,” Geiger said, November in Miami. adding that the retailer’s “back-to-school selling season has had a strong start, and we be- Shares of Nordstrom closed Thursday at $40.56, down 4 cents, in trading lieve we are well positioned to build on our positive momentum as we head into fall.” on the New York Stock Exchange. Fashion Scoops Barneys to Unveil Third Japanese Unit MONTECITO MAMA: Donatella Versace has been enjoying the By Tsukasa Furukawa stantly feel the “Barneys air” atmosphere, California sunshine and shopping. Last Friday, the designer Nakamura said. stopped in the Montecito, Calif., boutique Dressed, near Santa TOKYO — Barneys Japan Co. will open its third For men, the new store will target business exec- Barbara, looking for a top to wear with a pink Versace suit that Barneys New York store here, in Ginza on Oct. 1. utives working in Ginza and the nearby business was tucked in the trunk of her car. While purchasing the strapless The store, which will have a total floor area of about center of Marunouchi and other neighboring areas, Alison Trixie top, she announced, “This is a wonderful store, with 31,200 square feet, will occupy the first two floors and Barneys Japan said. For women, the store will focus some wonderful pieces. It has a real European flair.” Dressed, the basement of the prestigious Kojunsha Building in on housewives, career women in their 30s and 40s, located on Coast Village Road, Montecito’s answer to Rodeo Drive, Ginza, which is being redeveloped, Barneys Japan said. women working in business offices in their 20s and was also a stop for Jennifer Lopez, Britney Spears and local gal “The Ginza store will be the first large-scale 30s and all fashion-conscious women. Oprah Winfrey this month. Barneys store in 10 years since Barneys Inc. opened “We also expect customers, both male and fe- its Beverly Hills store in 1994,” Naoki Nakamura, male, on Saturdays and Sundays, who come to PUSHING THE VOTE: Former California first lady Sharon Davis, whose president of Barneys Japan, said in a statement. Tokyo and Ginza from all over Japan,” a Barneys husband, former governor Gray Davis, was ousted in last year’s The Ginza store, taking advantage of its size, will Japan executive said. “We hope to show them not gubernatorial recall election (the state’s $17 billion budget deficit have men’s and women’s fashion, respectively, on only clothes but for-holiday lifestyles.” didn’t help), is a believer in bargains. “I got this on sale for $44 at one floor, a concept that has not been tried even in The new store is being designed by architect Jeffrey Talbots,” declared Davis, wearing a textured coat from the retailer the U.S., the executive said, adding it will be able to Hutchison and artist John-Paul Philippe. The old and Max Mara slacks. She was on hand Wednesday at a Los offer a freer “magic mix” that will transcend brands. Kojunsha Building, which is making way for the new Angeles City Council meeting to promote Women’s Equality Day Sales in the store’s first five months of operation structure, was the former location of the Kojunsha being celebrated on Aug. 26 to commemorate the passage of the from October to February are projected to be 2.3 Club, Japan’s first social club founded in 1880. 19th Amendment, as well as her four-month-old nonpartisan Web billion yen, or $20.9 million at current exchange, Barneys Japan operates two stores — one in site, Shevotes.org, which encourages women to register to vote. It and to be 5 billion yen, or $45.5 million, annually. Shinjuku, which was launched in 1990, and the may be too late to save her husband’s job, but she thinks it can Like the Madison Avenue Barneys store in New other in Yokohama, which opened in 1993. Barneys promote less campaign vitriol. “As a nonpartisan site, we can take York, the Ginza unit will feature an interior design Japan is owned by Isetan Corp., which previously away the negativity that turns women off in elections,” said Davis. and environment that will enable customers to in- had an investment in Barneys in the U.S. WWDBEAUTYBIZ The Ultimate Fall Beauty Shopping Guide

PHOTOS BY GEORGE CHINSEE AND THOMAS IANNACCONE

Save They read. the Date They shop. Issue Date: October 15 You profit. Close: September 7 Interested?

Reserve your place in the issue designed to send the season’s makeup, skin care, fragrance and hair must-haves flying off the shelves.

For more information, contact Sarah Murphy, publisher beauty & marketing WWDMediaWorldwide, at 212-630-4656, or your WWD sales representative. 14 WWD, FRIDAY, AUGUST 20, 2004 WWW.WWD.COM VS, Bath & Body Buoy Victoria’s Secret Beauty Promotes Baker, Granoff

By Julie Naughton metics items into additional doors.” Limited Net in 2nd Qtr. Aura Science was developed under a joint-ven- NEW YORK — Victoria no longer has a secret when ture agreement between Limited Brands and Continued from page 2 it comes to the succession plan for the company’s Shiseido, and its products began rolling out in April early phases of a turnaround. In women’s, the career seg- beauty businesses — and its newly minted leaders 2002. While in early days the company trumpeted ment achieved strong growth, but the casual side was disap- are wasting no time in revealing their plans for plans for a 500-door freestanding chain in the U.S. pointing in knits, shorts, and casual bottoms, noted Ken maintaining the category’s forward growth. and an equal number of stores overseas that could Stevens, chief executive officer of Express. Sherry Baker and Jill Granoff have been tapped do $1 billion in total, Aura Science fell short of these “While August will continue to be a difficult month with to succeed Robin Burns, president and chief execu- expectations. The company opened nine freestand- respect to comparisons for the apparel brands as both the tive officer of Victoria’s Secret Beauty and Intimate ing stores, which have since closed, and began Express and Limited divisions are up against significant di- Beauty Corp., who, as reported on Aug. 3, has experimenting with other forms of distribution for rect mail and other promotional mailing from last year, retired. Baker and Granoff are now president and the line, including testing sales on QVC and in September should be on a comparable basis of promotional chief operating officer, respectively, of Victoria’s Victoria’s Secret Beauty stores and Bath & Body cadence to the previous year’s September,” stated Piper Secret Beauty. Works doors. Jaffray analysts Neely Tamminga and Jeffrey Klinefelter in a In their new roles, Granoff is responsible for all “We tested [Aura Science] in multiple retail for- research report. operational aspects of the business, including mats to see which one would work best,” Granoff Analysts at Jefferies, Donald Trott and Jennifer Malone, stores, finance, strategic said. “Putting [the prod- expect September and October comps to steadily improve as planning, manufactur- Robin Burns and Sherry Baker ucts] in Victoria’s the quarter progresses, as the “apparel brands anniversary ing, human resources, Secret Beauty stores their change in promotional cadence.” real estate, merchan- proved to allow us to Separately, Limited has substantially completed its $100 dise planning and allo- develop it most effec- million share repurchase program. So far, it spent $90.5 cation, information sys- tively.” Aura Science million and bought back 4.7 million shares at an average tems, legal and new skin care is now in cost of $19.36 a share, according to Ann Hailey, chief finan- business development. about 350 Victoria’s cial officer, who spoke during the conference call. Bear, Baker’s bailiwick Secret Beauty stores, Stearns’ Telsey said she wouldn’t be surprised if “over includes all marketing, while color cosmetics time, we see even bigger buybacks, given the company’s merchandising, design, are in about 50. By the cash position.” copy, visual, advertising, end of spring 2005, the For now, Hailey said the company is “comfortable” with public relations and range is expected to be third-quarter consensus estimates of 6 cents per share. product development in about 80 percent of Because of the upside from second-quarter results, Limited duties. Victoria’s Secret Beauty raised its earnings per share estimate to between $1.30 and Both will report to stores, said Granoff. $1.35 a share, based on mid-to-high single-digit comps. parent company Limited In addition, one of For the six-month period, net income rose 22.6 percent to Brands Inc.’s office of the duo’s first initia- $244.6 million, or 49 cents, from $199.5 million, or 38 cents, the chairman, compris- tives will be to “maxi- last year. Excluding gains from the sale of Galyan’s and from ing Leslie H. Wexner, mize our real estate the early repayment of New York & Co.’s note in the first chairman and ceo, and possibilities,” said quarter (that was part of Limited’s sale of the operation in Leonard Schlesinger, Granoff. “We’re right- November 2002), net income gained 35.1 percent to $205.1 vice chairman and chief sizing and remodeling million from $151.8 million, or 29 cents, last year. The year- operating officer. In a our beauty doors,” she ago adjusted figure excludes a gain from the sale of statement, Wexner said, said, adding that in Limited’s investment in Alliance Data Systems Corp. Sales “Both Jill and Sherry most cases, “right-siz- rose 8.6 percent to $4.19 billion from $3.86 billion, while have distinguished ing” will involve comps rose 8 percent. careers in the beauty increasing beauty’s industry which include space in stores. “We’re guiding prestige brands also continuing to fol- with great innovation low a model [true of the and success. Based on company’s Herald their experience in the Square location here] of beauty industry and at having beauty front and Victoria’s Secret Beauty, center in stores — since I know they will be great leaders for the brand. We beauty is an impulse buy, it helps to drive growth,” look forward to a smooth, seamless transition at Granoff added. Victoria’s Secret Beauty.” Granoff and Baker joined Victoria’s Secret The tandem appointment follows a strategy the Beauty within weeks of each other in spring 1999. parent company first put in place about a year and Initially, Granoff served as chief financial and plan- a half ago. Under that strategy, two executives — one ning officer, responsible for strategic planning, primarily a merchant and the other chiefly an oper- finance, real estate, merchandise planning, infor- ational whiz — are groomed to take over the top mation systems, legal and new business develop- slots at each of its divisions. According to a ment. Most recently, Granoff was executive vice spokesperson for Limited Brands, the strategy is president and chief administrative officer. Baker already in place at Express, Bath & Body Works and joined as vice president of marketing and was pro- Limited Stores. moted in 2002 to her most recent role as executive “We have the pleasure of directing a business vice president, chief marketing officer, with that has been doing very well,” Baker told WWD on increased responsibilities for retail marketing, mar- Thursday. “We have momentum in a category that keting development, advertising, public relations hasn’t had the good fortune to grow as quickly as we and product development. have. We’re planning to continue that momentum by Over the past six years, under Burns’ direction, continuing our move to make Victoria’s Secret the company has seen exponential growth in its Express was the one glitch in the Beauty a total beauty destination. We’re continuing beauty businesses, with sales said to have gone from second quarter for Limited Brands. to bring in third-party lines like Pout, and we are $450 million in 1998 to a projected total of $850 mil- expanding Aura Science’s skin care and color cos- lion by the end of this year. Galey & Lord Files Chap. 11 to Pave Way for Sale By Scott Malone come to unanimous approval.” rily financial institutions. Its largest holder was Patriarch’s offer calls for the firm to pay $45 million Barclays Bank plc with an 11.9 percent stake, GE NEW YORK — Galey & Lord Inc. filed for bankruptcy on for the mill’s term debt, replace or assume $85 million Capital CFE Inc. with 8.7 percent of the firm, Credit Thursday in a move intended to smooth the road for the in other secured debt and assume up to $58 million in Suisse First Boston owning 7.6 percent and Cerberus denim and twill maker’s acquisition by a $4 billion New trade and operating obligations. Partners LP with 7 percent. York investment concern. Lynn Tilton, principal of Patriarch, said, “When you This is the second major textile firm to enter bank- The investor, Patriarch Partners, said Thursday it go…through a process like we have, you learn more and ruptcy over the past year in order to facilitate a had made an offer worth $188 million for the Atlanta- more about people. I am indelibly impressed with this takeover bid. In September, Cone Mills Corp. filed a based mill. Patriarch first disclosed its interest in Galey management team.” petition while being wooed by investor Wilbur L. Ross. last month without revealing a price. The firm’s bankruptcy petition showed more than Ross’ firm, W.L. Ross & Co., bought that mill in March John Heldrich, president and chief executive officer $100 million each in assets and debts. This marks and since merged it with Burlington Industries to form of the $400 million mill, said the firm decided to file for Galey’s second trip into bankruptcy court in recent International Textile Group. Chapter 11 in Atlanta bankruptcy court after some of its years. It filed for Chapter 11 in 2002 and emerged from Patriarch has been investing in Galey since lenders bucked Patriarch’s advances. court protection in March. December 2000 and also holds ownership positions in “What this says is that we’re not going to sit here,” he When Galey came out of bankruptcy, its leading textile concerns Duro Industries, Glenoit Industries said. “We’ve got to move on, we’ve got an outstanding creditors gained control of the company. Court papers and New River Industries. Tilton has said she has no partner. Unfortunately, the term-lender group could not filed Thursday showed 91 current stockholders, prima- plans to merge any of those firms. WWD, FRIDAY, AUGUST 20, 2004 15

DESIGNER PATTERNMAKER Jr Handbag Designer/ 3-6 years experience. From first pattern through production. Must have exp. Product Devel. Asst. in knits. Must be able to work from Assist lead designer in preparing and designer’s sketch. Bilingual Chinese / Handbags/Accessories Wanted organizing presentations. Must be able English. Please fax resume to: One of Asia’s leading pre-owned stores to sketch handbags and backpacks 917-510-9448 seeks GENUINE Louis Vuitton and utilizing programs such as Illustrator Hermes handbags, SLG, and accessories 9 or 10, Photoshop, Streamline, etc. -- end of season, etc. must be unused Any experience creating tech packs for handbags a major plus. Exciting oppor- Product Develop. Assoc. and GENUINE. Top prices paid. Please For Mens/Boys & Girls swimwear E-mail: [email protected] tunity for a creative individual with EXCELLENT drawing and CAD skills and wovens importer. Execution of and room for growth within a cutting product packages & communication edge handbag company. Prior hand- skills with overseas factories essential. bag and/or backpack exp. a must. 3 yrs experience. E-mail resume to: [email protected] Fax resume to 212-695-1050 or Fax: 212-683-1079, Attn: Valerie PRODUCTION ASST DESIGNER Global importer needs highly organ- Major Intimate Apparel company ized person with understanding of gar- seeks a creative, motivated and highly ment production and customer follow organized individual with ladies fashion up. Min 2 yrs exp. Please contact: underwear and license experience. Ideal Mr. Bernard @ 212-889-5010 candidate should be detail oriented w/ 1407 BROADWAY strong sense of colors, trends and SHOWROOMS/OFFICES follow through skills. PR Representatives TREBOR MGMT If you have press rep. exp., are articulate, Steven Lambert 212-944-6094 Responsibilities will include designing seasonal lines, prepare sampling/ hard working, self motivated and love fashion, premier PR Firm has SR / JR For Space in Garment Center production packages and follow through on all phases of development immed. openings. [ Significant fashion which include specs and garment press exp. required for SR position] Helmsley-Spear, Inc. Please fax resume (212) 265.5379 212-880-0414 details. Great company and full benefits! Must be computer literate. SHOWROOM ASSIST $25,000 Showrooms & Lofts Please fax resume to Ideal FIT Grad! Run Home Fashion S. Couper at: 212-842-4020 Upholstery Showroom. Immed Hire! BWAY 7TH AVE SIDE STREETS Equal Opportunity Employer Great ’New’ Office Space Avail e-mail [email protected] ADAMS & CO. 212-679-5500 SaraMax Tech. Designer / Prod Asst. Men’s/Women’s Sleepwear & Underwear DESIGNER/ Tech design or production work experi- ence preferred. Mandarin bilingual a MERCHANDISER plus. Must possess clear oral/written New York City based handbag/ accesso- communication as well as strong ries co. seeks senior designer/ mer- computer skills. Self-motivated and chandiser. Candidate must be a crea- detail oriented,w/ effective follow-up tive, well organized, detail oriented skills desired. Job Resp: Sample team leader with ability to multi task management, creation of PDM pack- and meet deadlines. Must be able to ages, comm w/ overseas factories and design from concept to finished pack- some clerical duties. age with a strong ability to spot Fax resume & references: 212-868-7575 trends. Minimum 3-5 years handbag PATTERNS, SAMPLES, or accessories experience. Salary com- TECHNICAL mensurate with experience ILLUSTRATOR PRODUCTIONS Please fax resume to 201-868-6525 Home Sewing Co. seeks an entry level All lines,Any styles. Fine Fast Service. Technical Illustrator w/background in Call Sherry 212-719-0622. Design/Graphic Artist Garment or Home Dec. sewing. Must Rapidly expanding lingerie co. seeking be able to read sewing instructions creative designers/graphic artists. Must and develop inked drawings to best PATTERNS, SAMPLES, have ability to execute designs from illustrate instructions. Courses in Illus- concept to completion. CAD, Photoshop trating, Patternmaking, and Garment PRODUCTIONS & Illustrator. Fax resume: 212-689-4082. Construction a must. Knowledge of Full servcie shop to the trade. Fine sewing required. Knowledge of com- fast work. 212-869-2699. puter Illustration helpful. Excellent EDI Operator benefits. Send resume to: Accessories Co. seeks experienced & Simplicity Pattern Co. organized individual w/EDI knowledge. 2 Park Avenue, 12th Fl, N.Y, NY 10016 Please Fax resumes to: 212-868-5965 Attn: Human Resources or email [email protected] Graphic Designer Fast paced trendy accessory company seeks highly motivated, creative and organized MAC graphic artist. Specializing in fashion accessories, packaging and licensed properties. Junior market flare a must. Proficient in Illustrator and Photoshop. Experience needed. Please Fax or E-mail resume to Jennifer: Admin Since 1967 212-869-6927 / [email protected] W-I-N-S-T-O-N Operations Training Manager Montblanc North America, LLC. APPAREL STAFFING Murray Hill, New Jersey DESIGN*SALES*MERCH L’OREAL USA ADMIN*TECH*PRODUCTION Imagine a company that recognizes Develop and deliver orientation and (212)557-5000 F: (212)986-8437 your individuality and passion, and training programs for the sales force gives you the opportunity to contrib- and trade accounts. ute in meaningful ways from day one. A company devoted to building and *5-10 years experience shaping your future that allows you to *50% travel BOOKKEEPER work with brands such as L’Oreal Par- *Retail/Sales background a plus Full/Part Time. Must be skilled with is, Maybelline and Lancome. That com- Quickbooks Pro. Fax/E-mail resumes to: pany exists. That company is L’Oreal Submit resumes to: 212-290-0383 / [email protected] USA. Our L’Oreal Paris division has [email protected] EOE the following opportunity available: CAREERS IN APPAREL Retail Operations Manager - In Production - Techn. Design + Design Walmart Team See Listings @ www.ApparelStaffing.com Dallas, TX Area Reporting directly to the National Ac- Designer count Manager, you will be responsible ASST. SWEATER DESIGNER for the development of cosmetic modu- Contemporary sportswear company lar strategies that meet or exceed finan- seeks design assistant with min 3 yrs cial objectives agreed to by L’Oreal import sweater experience. Must have and Wal-Mart. Primary projects will in- strong technical knowledge of fully clude cosmetic spring and fall modular fashioned sweaters. Excellent computer updates and ongoing modular analy- skills and flat sketching a must. sis. To qualify, you must possess a Fax resume to Lynn 212-302-5763. bachelor’s degree or equivalent and at least 5 years experience with a consum- West Coast Sales er products good manufacturer in a RANGOON, the dress division of Category Management/Category Devel- DA-NANG, is looking for an ener- opment headquarters or support role; DESIGNER Cosmetics Category experience a plus. getic West Coast salesperson Current exp. in contemporary sportwear Modular process experience, prefera- with 2-5 years sales experience. collection department store level bly with cosmetics background, re- Dress background a plus. Please required. Min 4 yrs exp, sketching quired; familiarity with Wal-Mart’s Re- fax resume to 213-489-5199. skills & designing a complete collection, tail Link highly desired. Advanced MS conduct fittings, and full knowledge of Office Suite and MS Project skills are domestic and European fabric market. essential. Working knowledge of Fax resume to Lynn 212-302-5763 Prospace, Intactix, Appollo and Space- man a plus. This position requires over- Handbag Salesperson night travel to visit various market Handbags importer located in L.A., CA DESIGNER - JEWELRY areas in the US. You must be willing seeks salesperson to sell ladies’ con- Manhattan based trend costume jewelry and able to relocate for future poten- temporary handbag line. Experience company is seeking a jewelry designer tial advancement opportunities in the needed, aggressive and motivated. with at least 2 years experience to join US. Basic salary with great commission. our team. This is a fast paced and crea- Fax your resume to 626-810-6862 or tive environment and candidates must For consideration, please email your re- E-mail to [email protected] possess the following skills: technical sume to: [email protected]. drawing, color mapping, ability to com- Subject line of email must read: municate with overseas factories, cre- WHN#1422802. EOE M/F/D/V. TENTHOUSANDTHINGS ate specification sheets for product, Full time sales position. Min 2 years and bead manipulation. To learn more about L’Oreal USA and our careers, visit: retail exp. Please send resumes to: Please fax resume with salary [email protected] requirements to 212-725-6981 www.lorealusa.com or fax 212-352-1555.