TOMMY HILFIGER NET DROPS/2 BEAUTY’S NEW KISS/2 Women’sWWD Wear Daily • The Retailers’ FRIDAYDaily Newspaper • February 10, 2006 • $2.00 Beauty Karl’s Manhattan Project NEW YORK — After all the hype, fi nally it’s time for the most anticipated show of the New York season. “It’s all mixed together,” Karl Lagerfeld says of the manner in which he’ll present his Lagerfeld Collection and contemporary Karl Lagerfeld label at Cedar Lake, “which is the most modern way, no?” Similarly, he claims divergent inspirations. “There’s a northern infl uence — northern Europe, where I’m from,” he says. “The grays, the browns, the blacks, like Ibsen and Strindberg, but in a totally modern way, nothing specifi c. And it’s New York, too.” Got that? If not, no doubt it will all be clarifi ed tonight. Here, a look from the show. For more on New York, see pages 4 to 13. That’s Entertainment: A New Fashion Focus As Celebrity Takes Over By Lauren DeCarlo NEW YORK — If the winner of “American Idol” can snag a Grammy, could it be that one day soon the winner of “Project Runway” will be named the CFDA’s Designer of the Year? It’s not too far-fetched, as Kelly Clarkson’s Grammy on Wednesday night showed. The worlds of fashion and celebrity are becoming intertwined more tightly than a Gordian knot. And nothing illustrates that better than today’s schedule at New York Fashion Week: The day starts with a show for “Project Runway” — a program that most people in the fashion industry See Celebrity, Page24 PHOTO BY DAVID TURNER DAVID PHOTO BY 2 WWD, FRIDAY, FEBRUARY 10, 2006 WWD.COM Hilfi ger Net Falls, Sale on Track By Vicki M. Young was $13.5 million that represents the volume at- WWDFRIDAY tributed to the company’s exit from its young men’s Beauty NEW YORK — Tommy Hilfi ger Corp., saying its jeans wholesale business during fi scal 2005. $1.6 billion sale to Apax Partners is set to close Dyer, who is to leave the business after the clos- NEW YORK COLLECTIONS in spring over the objection of a major sharehold- ing and will be succeeded by Fred Gehring, ceo of The collections continued, with a moody vibe at Vera Wang and a gentle er, reported a 23.3 percent drop in third-quarter Tommy Hilfi ger Europe, said during the call that 4 artistry at Calvin Klein. profi t as U.S. wholesale volume fell because of re- the company saw some improvements in sales at duced department store orders. retail regarding its U.S. wholesale business, partic- Chief executive offi cer David Dyer said during ularly in its men’s wear business. However, the ap- GENERAL a conference call Thursday that directors of the parel fi rm still has work to do in its women’s wear The era of celebrity designers has evolved from high-profi le runway buzz Hong Kong-based apparel maker “unanimously re- business. The “current negative trends [will] carry 1 to taking the message directly to the stores and consumers. affi rmed their determination that the Apax transac- forward into the fi scal year 2007,” Dyer said. Heavy metal band KISS inked a licensing deal with Gemini Cosmetics tion is fair and in the best interest of the company International wholesale sales rose 4.1 percent Thursday for beauty and fragrances, with the scents due in September. and its shareholders.” His remarks came despite to $80.6 million from $77.4 million. On the retail 2 opposition from Sowood Capital, which held al- front, revenue increased 12.4 percent to $185.8 EYE: The Rainbow Room isn’t the typical fashion week venue, but it drew most 5.8 million shares of the company’s 93.9 mil- million from $165.3 million, while same-store sales 10 a fair share of star power for the Marchesa presentation and cocktail party. lion shares outstanding as of Dec. 31. Sowood fi led at U.S. stores rose in the low-single-digit percent- an objection to the deal with the Securities and age range. Licensing revenue gained 8.4 percent Classifi ed Advertisements.............................................................27 Exchange Commission, stating that it was unhappy to $20.6 million from $19 million. with the $16.80 per share purchase price. For the nine months, income dropped 5.6 per- To e-mail reporters and editors at WWD, the address is fi rstname. Dyer said that no competing bidder had contact- cent to $67.7 million, or 73 cents, from $71.7 mil- [email protected], using the individual’s name. ed the company or its banker, J.P. Morgan Securities, lion, or 78 cents, in the year-ago period. Revenue WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPY- since the Apax transaction was announced on Dec. also declined by 5.8 percent to $1.22 billion from RIGHT ©2006 FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 191, NO. 32. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one ad- 23, and that Tommy Hilfi ger “remains on track to $1.29 billion. ditional issue in January and November, two additional issues in March, May, June, August and December, and three ad- close” the transaction this spring. Wall Street consensus estimates have EPS of 96 ditional issues in February, April, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, For the quarter ended Dec. 31, income fell to cents a share in fi scal year 2006, and $1.03 a share Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Advance Magazine Publishers $15.5 million, or 17 cents a share, from $20.2 mil- in fi scal year 2007. Inc.: S.I. Newhouse Jr., Chairman; Charles H. Townsend, President & C.E.O.; John W. Bellando, Executive Vice President and C.O.O.; Jill Bright, Executive Vice President_Human Resources; John Buese, Executive Vice President_Chief Information Officer; lion, or 22 cents, in the same year-ago period. The Dyer also said company namesake Tommy David Orlin, Senior Vice President_Strategic Sourcing; Robert Bennis, Senior Vice President_Real Estate; Maurie Perl, Senior company beat the earnings per share consensus Hilfi ger and some members of European manage- Vice President_Chief Communications Officer. Shared Services provided by Advance Magazine Group: Steven T. Florio, Advance estimate of some Wall Street analysts by 1 cent. ment, including Gehring, have “nonexclusive agree- Magazine Group Vice Chairman; David B. Chemidlin, Senior Vice President_General Manager, Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. Canada Post Publications Mail Agreement No. Revenue in the quarter dropped 7.9 percent to ments with Apax, which means they would be free 40644503. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable $396.6 million from $430.7 million. to negotiate with competing bidders if one were to Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: SEND ADDRESS The company said the results were partly affect- emerge.” He added that Hilfi ger could vote his 4.3 CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR ed by a 36.3 percent drop in U.S. wholesale volume percent stake in favor of a better offer. But if the DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four to $107.5 million from $168.8 million from reduced fi rm were to end the Apax acquisition, it would owe weeks is required for change of address. Please give both new and old address as printed on most recent label. department store orders. Included in the reduction the private equity fi rm a $50 million breakup fee. Subscriptions Rates: U.S. possessions, Retailer, daily one year: $109; Manufacturer, daily one year $145. All other U.S., daily one year $205. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. First copy of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221-9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information by mail and/or e-mail, please advise KISS Seeks Sweet Smell of Success us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANU- By Julie Naughton KISS onstage. SCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPAR- ENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, NEW YORK — They paint their faces, wear leather OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED and studs and have legions of faithful fans. Now KISS, after more than three decades of heavy-metal music and outrageousness, plans to market two fragrances.