L PLUS: ALL FOR O , Jimmy Fallon, TAPS FOR HER Tory Burch, and more GLAMOUR MAGAZINE turned out for a fund-raiser SHORT FILM. for President Obama. PAGE 6 PAGE 9

EXCLUSIVE P&G’s McDonald Out to Cover Globe

By MOLLY PRIOR and ANDREA NAGEL

BOB MCDONALD WANTS seven billion customers. As the leader of the multibillion-dollar consumer FRIDAY, AUGUST 12, 2011 ■ $3.00 ■ WOMEN’S WEAR DAILY products giant Procter & Gamble Co., McDonald has the world within his reach. And his goal is as im- WWD mense and vast as P&G’s $82.56 billion global busi- ness: Convert every person on the planet into a cus- tomer, and get every one of the fi rm’s categories into every country. His sights are set on the developing world, where razors and shampoo are not commodities but aspi- rational luxuries. “There’s no question that 30 years from now, when people look back at this moment in time they are going to ask, ‘Did the [P&G] leadership team prop- erly move the center of gravity of the company more toward Asia and Africa where the babies are being born, or in this country to the Hispanic population, or in the Middle East to the Islamic population?” said McDonald, P&G’s chairman, president and chief executive offi cer, during an exclusive interview. He also wants current customers to spend more. “The average American spends roughly $100 on P&G products every year [across 35 product cat- egories in the U.S.]. In China — where we are the number-one consumer goods company and do $5 bil- lion in sales, over half of which is beauty — the av- erage Chinese consumer spends less than $3 a year on P&G products across 15 categories. You can see the tremendous opportunity,” he said. McDonald ultimately sees Chinese customers spending much more per head on P&G products. When it comes to beauty, the company said the average U.S. household spends $270 a year on fe- male beauty products in general across all distri- bution channels, with $66 of that total dedicated to P&G beauty products, and $290 on beauty and SEE PAGE 4

IN WWD TODAY

A New Name for Polo PAGE 3 NEWS: Polo Corp. is now just Ralph Lauren Corp. to show the group’s expanding number of brands.

Nordstrom Profi ts Up 20% PAGE 2 RETAIL: Nordstrom joins the fl ock of retailers reporting strong second-quarter results, with the Seattle-based company’s profi ts being driven by special sales events. A Touch of Color Domenico Dolce and Stefano Gabbana

are adding two new elements to their L ACRIA Atop Manhattan color cosmetics range in September. PAGE 10 STYLE: ACRIA’s Young Friends had Perfect Finish Creamy Foundation is quite a view during a party on the the brand’s fi rst cream foundation, and roof of the yet-unopened Hôtel Passion Duo Gloss Fusion is a cream Americano. lipstick with a gloss center. The line is in 70 doors globally. Industry sources estimate that the two new products could add $15 million at retail to the PHOTO BY JOHN AQUINO; STYLED BY TYLER RESTY brand’s sales. For more, see page 6. 2 WWD FRIDAY, AUGUST 12, 2011

Kohl’s earnings per share for the quarter Nordstrom Net Up 20% beat analysts’ forecasts by one cent.

By DaviD Moin

EvEryboDy lovEs a good fashion deal, even in hard times. Take it from nordstrom inc., which on Thursday said net earnings rose 20 percent in the second quarter ended July 30, and credited its anniversary sale, which offers shoppers new merchandise at a discount, for much of the period’s success. nordstrom’s earnings rose to $175 million, or 80 cents a di- luted share, from $146 million, or 66 cents a diluted share, in the same quarter last year. same-store sales increased 7.3 percent, marking the seattle-based retailer’s seventh-straight quarter of same-store gains. net sales rose 12.4 percent in the quarter to $2.72 billion, from $2.42 billion in the same period in fiscal 2010. “The anniversary sale was a significant factor. it was the best yet in the history of our company,” said nordstrom inc. president Kohl’s, Dillard’s Profits Rise in 2Q blake nordstrom, during a conference call. “it remains unique. it offers the customer preseason savings on new merchandise. after ship with Capital one allowed Kohl’s to increase the event, everything goes back to regular price. it’s fresh new By sHaron EDElson its approval rate by 300 basis points. merchandise at considerable savings. our customers love it.” Kohl’s, which incurred cost increases of 10 to 15 The anniversary sale is nordstrom’s biggest sale of the year. it KoHl’s CorP. may have seen profits rise 16.5 percent in apparel, is planning inventories conser- starts in mid-July and lasts two weeks. The event this year had the percent in the second quarter, but chairman and vatively. “increased penetration in private and ex- added dimension of providing early access for reward customers. chief executive officer Kevin Mansell was less clusive brands will help us retain margins if there’s in addition, “strong executions” on two clearances — the half- pleased with the retailer’s sales performance. resistance to price increases,” Mansell said. “staying yearly women’s and kids sale and the half-yearly men’s sale — helped The Menomonee Falls, Wis.-based retailer within her budget is our customer’s number-one con- the quarter, though nordstrom officials said full-price selling out- Thursday reported net profits of $303 million, or cern. We know we have to be very aggressive with paced these clearances and that they are becoming less significant. $1.09 a share, for the quarter ended July 30, from marketing to motivate the consumer to buy.” nordstrom’s showing beat Wall street estimates and the retail- $260 million, or 84 cents, in the prior year’s quarter. sales, general and administrative expenses in- er raised guidance for the year to $2.95 to $3.10 in diluted earnings While earnings per share beat Wall street ana- creased 0.7 percent for the quarter, well below the per share from an earlier $2.80 to $2.95 forecast. nordstrom also lysts’ estimates of $1.08 a share, Mansell said dur- company’s 3 to 4.5 percent forecast. operating in- expects same-store sales to grow 4 to 6 percent for the year. ing a conference call that, “We were not happy come rose 14 percent to $510 million. Capital expen- nordstrom’s results mirrored the double-digit profit gains with our sales performance.” sales for the quar- ditures were $473 million for the first half of 2011. reported by Macy’s inc., ralph lauren Corp. and Kohl’s Corp. ter were up 3.6 percent to $4.2 billion, from $4.1 Kohl’s by the end of september will have unveiled earlier this week. billion in the 2010 period, and comps rose 1.9 per- 31 new stores. its third e-commerce fulfillment cen- shares of nordstrom closed up 5.5 percent to $42.33 prior to its cent, below the company’s estimate. ter will be up and running in time for the holidays. after-market earnings report. Equity markets rose sharply Thursday, The lack of a big apparel launch was one rea- “our stock is undervalued,” Mansell said. “our pushing retail stocks up 3.8 percent after Wednesday’s 4.6 percent son cited for what Mansell called peak working capital needs will decline, while the Dow Jones industrial average advanced 4 percent, a “subpar sales performance.” be in the third quarter, but we still or 423.37 points, to 11,143.31, recapturing most of Wednesday’s losses. also, axcess, “a pretty big anchor expect to buy back at least $500 The s&P retail index increased 17.46 points to 483.36. brand that we purchased from million of stock in that quarter.” signs of U.s. economic weakness and the fears that the debts liz Claiborne, was eliminated,” Kohl’s closed up $3.21, at of italy and spain or others could cripple the banking sector he said. “it’s been a drag on the 3.6% $47.50, on Thursday on the new have had markets on a ragged path over the last two weeks as first half of the year.” However, Percentage increase of sales york stock Exchange, a 7.25 per- investors sought safety and direction. exclusive brands such as Fila, in Kohl’s second quarter cent jump. at nordstrom, shoes, cosmetics and designer apparel were lauren Conrad, simply vera compared to a year ago. Meanwhile, Dillard’s inc. late standouts in the quarter, though according to Pete nordstrom, pres- vera Wang and Mudd achieved Thursday reported that second- ident of merchandising, women’s apparel lately has “lagged the av- “strong double-digit increases.” quarter earnings nearly tripled erage. We hope to have some things we can talk about in coming Kohl’s won’t want for launches in the third quar- as sales picked up 3.8 percent. quarters on the work we are doing to improve the business.” ter, when its exclusive Jennifer lopez and Marc net income for the 13 weeks ended July 30 was regionally, the south and Midwest were the top perform- anthony brands bow. Mansell said the lines will $17.6 million, or 32 cents a diluted share, eclipsing ers for full-line stores. The direct channel continued to show help Kohl’s achieve a 4 to 6 percent sales increase the 25 cents expected, on average, by analysts. year- strong sales growth, outpacing the overall nordstrom increase. in the third quarter. Comps are forecast to rise by ago net profits were $6.8 million, or 10 cents a share. nordstrom rack’s net sales increased $92 million, or 23.4 per- 2 to 4 percent. Mansell raised Kohl’s full-year EPs sales rose to $1.44 billion from $1.39 billion cent, with same-store sales up 4.8 percent. rack will open 17 estimate by 20 cents, from $4.40 to between $4.45 with overall revenues also up 3.8 percent to $1.48 stores this year and about 13 next year. and $4.60 a diluted share. billion. Comparable-store sales were up 6 percent, nordstrom’s renowned customer service has been ramped up Kohl’s e-commerce business is on plan to reach the company said, with gross margin from retail this year. an enhanced mobile Web site was launched in June the company’s goal of $1 billion in annual sales. operations unchanged at 33.7 percent. retail op- and about 6,000 associates were outfitted with mobile point-of- E-commerce sales in the quarter were up 36 per- erations do not include the CDi Contractors llC sale devices to speed checkouts and locate merchandise. “as we cent over last year to $171 million. Kohl’s is delv- business unit, although its revenues are consoli- learn more, we are in a strong position to accelerate the utiliza- ing deeper into sizes in an effort to grow apparel dated into net sales data. tion and add more if needed,” noted Jamie nordstrom, president sales online and is dramatically increasing its in- For the six months, net income rose 69.1 per- of direct. “Direct is the fastest growing part of the business.” He vestment in digital media. cent to $94.2 million, or $1.66 a diluted share, from also said there are “opportunities to personalize the online ex- There’s also a campaign to get more credit $55.7 million, or 80 cents. net sales were up 2.4 perience, and selection…how we might able to have a selection a card customers. “History has proven that Kohl’s percent to $2.91 billion from $2.84 billion. little more specific to online store.” charge card holders are the most loyal custom- “While we are monitoring the macroeconomic The company’s strong balance sheet, with $1.1 billion in cash ers,” said Mansell. “They have a significantly high- environment closely, we will continue to work at the end of the quarter, positions it for further investments in er annual spend. as a result, we made changes in to create clear distinction at Dillard’s with en- technology and elsewhere. according to Jamie nordstrom, “We the incentives to open a Kohl’s charge account.” hanced service levels to match our improving will be adding more features and functionality to meet our cus- The retailer is focusing on signing new charge merchandise mix,” said ceo William Dillard 2nd. tomers’ expectations online.” customers in the south Central region. a partner- — WITH CONTRIBUTIONS FROM ARNOLD J. KARR

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Photo bY MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. WWD FRIDAY, AUGUST 12, 2011 3 WWD.COM Ralph Lauren Drops ‘Polo’ Li & Fung Acquires

billion. total sales for the quarter rose 33.3 percent to Fishman & Tobin By MARc kARiMzAdEH $1.49 billion from $1.12 billion. Shareholders clearly had reason to be pleased. nEW YoRk — Say goodbye to the Polo in Polo Ralph Harry korba, an individual shareholder, pointed out And Crimzon Rose Lauren corp. how, at the time of the meeting last year, the com- At the firm’s annual meeting on thursday, share- mon stock was at $85.47. “it closed yesterday on the By Vicki M. Young holders voted to change the company name to Ralph new York Stock Exchange at $125.28,” korba said. Lauren corp. the move is a result of just how much “the common stock has risen $39.81. thank you very Li & Fung Ltd., the Hong kong-based sourcing giant, the corporate identity has evolved over the years, much.” on thursday posted a 16 percent decline in first-half with several brands and labels that do not carry the Philip Berman, a portfolio manager, used the Q&A profits, and said it acquired children’s apparel firm Polo name and logo. it is also in line with other de- session as an opportunity to suggest additions to the Fishman & tobin inc. and costume jewelry company velopments at the company, including the change of crimzon Rose international. polo.com to ralphlauren.com in 2008. Both acquisitions of American firms will fall under Ralph Lauren, chairman and chief executive of- the LF uSA umbrella. terms of the two deals were not ficer, had all the reasons to be confident at the meet- disclosed. ing. the company was one of the rare stocks to rise Fishman & tobin is seeking to expand its licensing on Wednesday after its first-quarter results increased business in children’s apparel and men’s tailored ap- 52.4 percent and revenues gained 32.4 percent. parel, while crimzon is gearing up for the unveiling of a Wearing a gray suit with a matching gray tie, Lauren jewelry line under the Jennifer Lopez collection set to stressed just how robust the company is, even in make its debut next month at kohl’s. these volatile times. investment banking sources expect Li & Fung to do at “thirteen years ago, this company went public, least one or two more transactions by yearend. and it went public very successfully [with] about $1 Rick darling, who heads up LF uSA, was traveling billion,” Lauren said. “i remember on my iPo trip, back to the u.S. from Hong kong thursday and could not one of the investors asked me a question. ‘Well you be reached for comment. have been in this business for about 30 years, isn’t First-half profits fell to $236 million. the company said that enough?’ Well, we went from $1 billion to $12 bil- the decline was due to higher operating expenses from lion [in retail value].” recent acquisitions. Revenue for the first half of the year Lauren said it was the consistent vision that sepa- rose 33 percent to $8.8 billion, helped by growth in all rated the corporation from many others, and it’s one three of its business units: trading, logistics and distribu- that applies to many markets. tion. All figures are in u.S. dollars. “We have gone to china and there’s aspiration Shares of the company, a major supplier to u.S. re-

in china,” Lauren said. “if you want to see people mitra robert tailers, have plummeted nearly 70 percent over the last that are excited about living, excited about growing, Ralph three months amid concerns about a weak u.S. retail that hadn’t had the taste of luxury that we have in Lauren outlook and consumer confidence. America....We have seen that in china, we are seeing photo by Li & Fung’s chief executive officer and group presi- it in india, we are seeing it in Russia, and we have just dent Bruce Rockowitz said at a news conference in Hong begun. this company is, as far as i am concerned, at board. “Right now we are top heavy on the over-60 kong that despite the the beginning.” level,” Berman said. “in fact, now would be the ideal gloom he remains Lauren is not oblivious to the world climate, time to nominate david Lauren to the board and to confident about the though. “We know what’s going on on Wall Street,” have him as chief operating officer of the newly-mint- company’s outlook Lauren said “We were one of two companies, i think, ed Ralph Lauren corp.” and three-year plan, in America that had amazing increases. Berman also asked Lauren whether there could targeting core operat-

“i can’t give you any answers to what’s going on one day be another acquisition for the company that ing profit of $1.5 bil- around the world,” he added. “We do speak to people is comparable to when it bought club Monaco in 1999, lion by 2013. and we do watch the world. i can only tell you this or whether future growth would rely on internal ex- “i feel confident company is as solid as we ever think it should be.” pansion. despite what is going For the three months ended July 2, the company’s “i would never say never, and when we talk about on in the world,” income rose 52.4 percent to $184.1 million, or $1.90 a club Monaco, it has great potential,” Lauren said. “it he said. “i don’t see diluted share, from $120.8 million, or $1.21, last year. is doing very well today and so i think we are open market improvement Revenues rose 32.4 percent to $1.53 billion from $1.15 to anything that comes along that we think is valid.” during the three- year plan, that’s what we’re planning for.” Rockowitz said the company has the Study: Bargains Not’’ Key for Shopper top line and mar- establish the references for value for the work horses gin growth it needs. By SHARon EdELSon such as Mossimo,” said Anne zybowski, kantar’s di- “now it’s about ra- rector of retail insights. tionalization and in- A REcEnt StudY by kantar Retail found bargains At nordstrom, luxury brands establish exper- tegration and putting are not always a prime motivator of shopping trips. tise through breadth of assortment, helping to rein- everything together,” Crimzon’s Jennifer Lopez Collection. the study compared the value propositions of force the company’s positioning. Women’s jeans at he said. 11 retailers to find which is the most compelling. it nordstrom had a weighted average price of $160, yet in June, the Asian firm bought Loyaltex Apparel also looked at breadth of selection and promotional there were styles priced as low as $100 and as high and tVMania, a European supplier of tV character- activity. as $350. “nordstrom uses a lot of luxury brands to branded apparel. the company also made a number the research firm then juxtaposed the findings carve out fashion at the top end of the price range,” of smaller acquisitions of companies, such as Beyond with data from its ShopperScape consumer survey. zybowski said. Productions, which manages all of Beyoncé knowles’ Probably the most confounding consumer finding While shoppers of certain retailers overlap in brands and celissa. is that the main reason shoppers go to a specific some cases, consumers of each channel essential- Allan Ellinger, senior managing partner of Marketing store is not to find bargains. Rather, kantar found ly have different needs. dollar store shoppers are Management group, the financial adviser to both that trip missions differ by looking for value and quick Fishman & tobin and crimzon Rose, said “through retailer. For example, Macy’s check out. “dollar stores these transactions, LF uSA acquires two of the best man- shoppers are most likely to are playing to their audi- agement teams in their respective markets, while both be looking for items to build Nordstrom uses a lot of ence with a much tighter Fishman & tobin and crimzon Rose will strategically their wardrobes, while Wal- assortment,” said zybowski. benefit from Li & Fung’s expanding global platform.” Mart shoppers want to re- “the [stores] are easy to Mark Fishman, chairman and ceo, and Jimmy place items that are worn or luxury brands to carve shop and provide a lot of Rosenfeld, president, will become co-presidents when torn. Browsing dominates at clarity. dollar general has the deal closes, Rosenfeld said. old navy and off-price retail- out fashion at the top one or two jeans stock- Rosenfeld said the 97-year-old firm now has a part- ers. Meanwhile, specific needs keeping units at $10 each. ner that can help it take advantage of growth opportuni- send shoppers to J.c. Penney, end of the price range. clarity is critical to help ties. it currently has licenses for izod, Arrow, nautica, target and kohl’s. the latter close the deal.” dockers, calvin klein boys tailored apparel and tommy. is by far the most promotional — Anne Zybowski in terms of where peo- crimzon Rose was founded by Felix Porcaro Jr., who retailer in the study, followed ple shop, power centers will remain with the firm. in 2009, it merged with Erica by Penney’s, old navy, Sears had the biggest drop, down Lyons Jewelry. and Macy’s. 2.7 percent from 2010, followed by strip centers the jewelry business, other than the Erica Lyons the survey found that only a small percentage with specialty stores, down 0.2 percent, and re- brand, includes private label and licensed celebrity of shoppers are focused on styles and trends when gional malls, down 0.1 percent. online shopping brands. crimzon has the license for daisy Fuentes jew- they visit a store. And men disproportionately focus sites grew by 1.2 percent and lifestyle centers, elry sold at kohl’s. on replacing worn or stained items rather than shop 0.9 percent. According to Lori Porcaro, director of marketing, the for new looks. “the regional mall base is holding steady firm just signed a licensing agreement for jewelry under Pricing touches consumers’ psyches as well as with one-quarter of all shoppers going there,” the Jennifer Lopez collection. wallets, influencing their perception of a brand. zybowski said. online shopping may be getting its costume jewelry lines are sold at major retail- Premium pricing promotes a retailer’s credibil- more competitive, though. one-quarter of online ers such as Belk, Bon-ton, Forever 21, Macy’s, Shopko, ity. “target’s limited time collections [such as go consumers buy only when there’s an offer for free target and Wet Seal. international] are extremely important because they shipping.’’ — With contributions from EllEn shEng 4 WWD FRIDAY, AUGUST 12, 2011 beauty McDonald’s Global Beauty Vision

{Continued from page one} grooming for women’s and men’s products combined, with $81 spent on P&G items.

McDonald, who like most P&G executives deftly rat- tles off P&G-centric figures and statistics, said the firm’s growth hinges on selling more of its 38 product catego- ries in more parts of the world. The Cincinnati-based company currently sells an average of 19 product cat- egories in 180 countries where it does business. “By the

end of 2015, we want to have 25 categories on average. Many of those are beauty categories,” he said. The company already is in hot pursuit of this strategy. In fiscal 2011, P&G expanded to 16 countries, includ- ing Brazil and South Korea. “If you look at the previous five years, we wouldn’t have done five countries,” he said. The big global’’ milestones for 2011 include becoming a $1 billion brand in Asia alone, and P&G be- coming the number-one hair company in Japan. For P&G — a company known for peeking into con- sumers’ medicine cabinets — selling to more people means building relationships. “We came up with our purpose-inspired growth strategy, where we want to touch and improve the lives of more consumers in more parts of the world more completely,” said McDonald. In fact, the phrase “touch and improve lives” is seamlessly — and often — interwoven into McDonald’s language, and is one of the most heavily used phrases in the company’s vernacular by many of its top guns. It also translates into a quantitative goal: Reach a total of five billion consumers by 2015 — and then go to reach the world’s seven billion inhabitants. The ceo of the company is the leader of the beauty business. You can’t delegate that big a piece of the business. — BoB McDonalD, Procter & GaMBle co.

When McDonald took the helm from his predecessor, A.G. Lafley, in 2009, P&G counted 3.8 billion people as customers. Today, 4.4 billion consumers buy P&G prod- ucts, ranging from diapers to high-end skin care. Much of P&G’s growth plan focuses on growing brands vertically into more price tiers, and horizontally into more category opportunities. As McDonald sees it, grow- ing vertically — meaning one can buy Olay Complete moisturizer for $6 or Olay Pro-X firming cream for $45 — will grow share. Tackling adjacent categories, a given in beauty, is key to horizontal growth. P&G’s move in this direction includes Dolce & Gabbana’s reach into color cosmetics from fine fragrance (see related story on page 6), and Olay’s recent entry into acne and ’’depilatories. Gina Drosos, group president, Global Female Beauty, explained that P&G’s drive to enter new countries with new categories is a “very deliberate and strategic pro- Pelt Ros Van cess.” P&G’s advantage, she said, is “we have more breadth across a woman’s regimen and we can serve

more needs from head to toe. So we try to leverage that. Photo by Getting more categories into new markets.” For all of P&G’s might and success in the beauty in- star within the company as the chief architect of P&G’s he said. “There’s been a lot of change over at P&G. It dustry, a number of Wall Street analysts say they’re grow- “him” and “her” beauty strategy — rattled some industry feels like this is one business where P&G hasn’t figured ing increasingly impatient as they wait for the consumer observers, who suggested McDonald was under growing out the right recipe for success.” products giant to jump-start more aggressive growth in the pressure to fix the beauty business. McDonald sees the changes as part of the normal ebb category. For the three-month period ended June 30, the As of July 1, Shirley’s role has been overseen by and flow of a large corporation. company’s most recently reported quarter, P&G’s organic Dimitri Panayotopoulos, the former vice chairman of Referring to Shirley’s departure, he said, “Ed wanted sales in the beauty division gained 3 percent and groom- Global Household Care, who as part of the changes to retire and we supported that. He contributed greatly ing’s organic sales ticked up 1 percent. The two categories was named vice chairman, Global Business Units. “The to this company. He is a good friend. And we felt like were outpaced by health care, which grew 7 percent; fab- leadership turn is nothing to sneeze at,” said Deutsche this was an opportunity once Ed made that decision to ric and home care, up 4 percent, and baby and family care, Bank analyst Bill Schmitz. “P&G has lots of opportunity flatten the organization.…It used to be beauty was a di- up 10 percent. Snack and pet care declined 1 percent. and an amazing geographic footprint. But I’d love to see vision of P&G.” He notes that if you include segments Further raising eyebrows was a string of management someone take accountability for the beauty business such as oral care and feminine care within beauty and changes earlier this year, precipitated by a number of ex- and stick his [or her] neck on the line.” grooming, the business accounts for nearly 50 percent of ecutives vacating key beauty and grooming posts. At least He suggested should the company decide to appoint P&G’s sales, saying, “So why wouldn’t I want to be more five beauty executives have left the company so far in 2011. Drosos as the head of beauty, it would signal that “P&G engaged in 50 percent of the company?” P&G has emerged from the changes with a leaner or- is serious about beauty.” He added, “Since I became ceo, what I have been ganizational structure, an outcome McDonald views as RBC Capital analyst Jason Gere approved of P&G’s trying to do is flatten the organization and simplify the a positive one. move to flatten the organization with one exception. way we work. We have gone from seven layers to five. We That said, the departure of Ed Shirley — who was “For beauty, you need the right reinforcement. Yo u now have 50 percent fewer vice chairs and vice presi- vice chairman of Beauty & Grooming and seen as a rising have to have a seasoned and focused executive there,” dents and 15 percent fewer directors.” WWD FRIDAY, AUGUST 12, 2011 5 WWD.COM

McDonald emphasized the current structure, namely could result in a $50 million brand becoming a multibil- the “him” and “her” beauty set up, as appropriate for lion-dollar brand and a leader in the category,” he said. Olay Pro-X the moment. “I can’t predict what P&G’s structure will As a P&G veteran, McDonald is trained to keep his look like in the future, but I can predict it will change,” eye on the customer and he intends to win wherever he said. “I tell young people in the organization about people shop. If people are shopping online, they want to the importance of having a purpose in life and not to be there. If people are shopping in department stores, make it as narrow as being in a [certain] position at P&G wants to be there. P&G because by the time you’re ready for it, we will “Winning wherever people shop is a manifestation of have reorganized and the position won’t exist anymore.” our scale,” said McDonald. When asked if P&G plans to name a new head of P&G’s acquisitions — from Clairol to Co. beauty, McDonald chuckled, “Who is the leader of the — have helped it gain ground in certain distribution ’’ beauty business? Well, the ceo of the company is the channels, for sure. leader of the beauty business. You can’t delegate that , president of the company’s global male big a piece of the business.” grooming business unit, said the Stifel Nicolaus analyst Mark Gillette deal taught P&G to dive Astrachan said, “The whole leader- deeper into mass retail expertise, ship team is talking about how well- particularly with a dual presence ness and beauty is a priority,” adding Bob McDonald’s in stores, and to create a new it’s a message that helps to assuage space known as the “guy aisle.” investor concerns. “This is a category Goals for 2015 “We have historically been you should keep your focus on.” focusing on the shelf, but with In fact, analysts have said P&G ■ Reach five billion customers, Gillette and Duracell, focus on often refers to beauty as “the path checkout is a critical area for of least resistance for growth.” up from 4.4 billion currently. male grooming and we’re starting For McDonald, a graduate of to leverage that across our port- the U.S. Military Academy at West folio,” said Louvet. “If you think Point and a former U.S. army cap- ■ Expand to an average of 25 about guys shopping, they buy in tain, years of globe-trotting have categories per country from a female space. We are creating a informed his international world male-focused environment — ‘the view, particularly about beauty. The its current average of 19. guy aisle’ — which is reorganizing ceo, who was born in Gary, Ind., left these products that are relevant We at P&G don’t buy that his small-town roots behind dur- to our mind-set.…You will see it ■ ing his time in the military, which Increase consumers’ in some stores in the U.S., at Wal- there are mature categories took him to Belgium, France and average spending on P&G Mart for example, but probably Panama. He left the army in 1980, the best example is H-E-B [gro- taking a job with P&G. The com- products to $14, up from $12. cery chain] and Target.” and mature brands. Look at pany’s growing interests overseas The aisle, said Louvet, “has led him to take posts in Canada, the everything you can think of ” in- what we’ve done with Olay Philippines, Japan and Belgium. cluding deodorant, skin care, fra- McDonald, who speaks four languages — English, grance and even male magazines. It first made its debut and . People thought Japanese, French and a bit of Filipino (or Tagalog) — in 2009, but the concept has expanded over the past says his two adult children, Jennifer and Robert, didn’t 18 months around the world, such as in India, where a attend school in the U.S. until college. month ago Louvet saw it in a local chain. those brands were dead. He is teeming with anecdotes from his years spent Joe Magnacca, president of Daily Living Products and abroad and, despite the demands of the corner office, is Solutions of Walgreen Co. and president of Duane Reade, — BoB McDonalD an avid student of history. In fact, he said he was about said P&G’s approach to its male grooming business has 300 pages into Ron Chernow’s biography on George influenced the two drugstores’ planograms. Duane the bottom of the bucket.” The April 2010 relaunch of the Washington, called “Washington: A Life.” Reade, for instance, is planning to expand on the “men’s Pantene brand — the second in four years — failed to gain “I didn’t want to read it,” he admitted. “I felt like zone” section at its new store, located at 40 Wall Street in traction with shoppers. As a result, this year Pantene began I knew everything there was to know about George Manhattan, with a more dramatic merchandising effort. to introduce items consumers said they missed, including Washington. Boy, was that a mistake. It’s a great book.” Magnacca recently met with P&G’s Panayotopoulos, who two-in-one shampoo-and-conditioners and larger-size items Asked about his take on Washington’s military suc- now oversees beauty. “I feel extremely confident with — all backed by a new marketing campaign. cess, which some have questioned, McDonald said, “He his leadership and focus on beauty, particularly with his Enter Walter Geiger, P&G’s newly named vice presi- lost a large number of battles. He ended up winning the European background,” said Magnacca. dent of North America, hair care and color. Geiger comes war, so it’s hard to discredit him. But the thing that im- Louvet forecasted that the next decade may finally be to the U.S. with more than 10 years of hair care experi- pressed me the most about him is the way he learned. the one where male grooming sees its long anticipated ence, most notably in Asia and most recently in Singapore. He never made the same mistake twice. One of the boom. The growth rate in male products is twice that of One month into the position, Geiger said the most things I teach employees and the groups I teach to is the the women’s category, he said, noting is important goal is to grow market share. To get there single biggest thing that differentiates those who suc- the fastest-growing brand in the men’s portfolio. A combi- he wants to sell more treatments and styling aids, and ceed are those who are continually learning.” nation of same-store growth, increasing awareness, mak- grow into more premium and specialized’’ offerings. The During the decade he spent in Asia, McDonald devel- ing more products available in existing stores and open- plan to grow conditioner and treatment sales isn’t new oped a fondness for the beauty category. “I spent nearly ing more stores in the U.S. is driving that growth. When for P&G and even harkens back to 2001, when the U.S. five years of my life running the hair care business, from P&G first acquired the high-end men’s brand, The Art of hair business was led by Ravi Chartuvedi. As for salon- 1991 to 1995, at a time when we created Vidal Sassoon in Shaving had 31 stores, but plans are to end the year with inspired brands, Geiger assessed sales of the high-end the red bottle,” he said. 50, mostly in big cities and in malls in key locations, such brand Fekkai at drug stores as good, but there is room to It may be fortuitous that hair care is P&G’s largest beauty as Chicago, Dallas, and Minneapolis. grow. “We can be much bigger. And in midtier, the whole category (while the industry’s is skin care), since Being that much of the division’s investment is being affordability theme, that I want to work on.” McDonald was on the team in Asia that helped put behind The Art of Shaving, P&G has He also wants to tap into the Hispanic and ethnic launch Pantene in the Nineties. consequently decided to discontinue consumer. “In Asia, everyone has long dark hair. In “I remember Pantene when it was a $50 distribution of Zirh, the men’s skin care Europe, it’s thin brunette or blonde [hair]. Here, every- million brand with a gold cap and a group of brand it purchased in mid-2009 for an one is diverse,” he said. people I worked with in Taiwan and Japan estimated $40 million. The decision Geiger said he remembers the launch of Pantene in came together and created was made “after a thorough re- Japan and how the of bringing a two-in-one technol- something unique. What view [of] the future potential of ogy (healthy hair and shine) was a new end-benefit message. we figured out is that every Zirh relative to other investment “That still sticks in my mind,” he said. “And there is woman in the world thought opportunities,” the company said. still an opportunity to go back to that in the U.S. on TV.” her hair was damaged — There also has been a lot of Currently, P&G is honing in on its “zero breakage” end- that wasn’t new news re- discussion around Pantene. benefit message in TV and print ads featuring . ally — and we figured out a Depending on the week, How long it will take Geiger to recharge hair care formula that made the hair Pantene claims an 11 to 15 per- and hair color is unknown. And while analysts often healthy, but the key was to cent dollar market share of the point to Pantene’s sheer mass as one of its biggest hur- be able to show the differ- U.S. hair care market, where- dles, McDonald sees Pantene’s size as an advantage. ence in shine,” he said. as in many markets around “We at P&G don’t buy that there are mature catego- Hair, one the most mar- the world, the brand claims ries and mature brands,” McDonald said. “Look at what keting sensitive categories, a 20 percent share. Globally, we’ve done with Olay and Old Spice. People thought McDonald said, is of course it is upward of a $3 billion those brands were dead.” driven by technology, but new brand. And while it recently In McDonald’s view, “The ideal for me is a one-on- ideas are what can change became a $1 billion brand in one relationship with every customer in the world.… the course of a hair brand. Japan, growing it domesti- Eventually someone is going to get there. Digital tech- “Technology is impor- cally has been difficult. nology permits that.” He added, “We have to have each tant and insight is impor- Earlier this year, during of our brands have that kind of relationship with the tant, but I love that any one an earnings call with analysts, customer. We want to understand the insights and then of us can come up with an Pantene items. McDonald called Pantene’s develop big ideas into ways people can participate and idea on any given day that Mario Godlewski photo by U.S. business “the hole in turn their participation into movements.” 6 WWD friday, august 12, 2011 More pictures at WWD.com/ beauty beauty-industry-news. Dolce & Gabbana Adds to Color Cosmetics Lineup

be (for a stain effect). “Today’s girl likes By JuLIE NAuGhTON traditional makeup, but also likes to try new things,” said Gabbana. “Passion Duo WITh A NEW cream foundation and links gloss and lipstick and the final ef- lipstick/gloss combination due this fall, fect on lips is very nice.” Domenico Dolce and Stefano Gabbana Dolce said, “The combination be- are planting their stake even more deep- tween matte and gloss gives an extra ly in the color cosmetics playing field. shine on the lips, especially on their cen- The designers, whose scent and color tral part. And it has a very specific click cosmetics business licenses are held by when the packaging closes. After several Procter & Gamble Prestige Products, attempts we achieved the result we want- first entered the makeup category in ed and we are very proud of it.” February 2009 with 110 stockkeeping While color cosmetics isn’t an inexpen- units. Including the new additions, the sive category to enter, the designing duo range will now comprise 250 sku’s. felt extremely strongly about involving Perfect Finish Creamy Foundation, themselves in makeup. “For us, makeup which will be available in 15 shades, each has always been a fundamental element to $55, is the line’s first cream foundation complete the Dolce & Gabbana universe,” and is intended to offer easier applica- said Gabbana. “We had thought about Dolce & tion and is buildable. Each glass jar is makeup for a long time and we dedicated Gabbana’s hand-filled and finished with an engraved energies, study and intensive research be- Passion Duo gold top. “A woman who applies makeup fore launching it. Fashion collections and Gloss Fusion is doing a very sensual act that captures makeup are linked together, since they Lipstick. the attention,” said Dolce. “So the quality complete each other.” is important, but also its image, its pack- Dolce added: “We always knew that aging.…Everything in our products is makeup is a very challenging market, on this main theme,” said Dolce. “We the line in their first 12 months on coun- designed to have women feeling sensual, with specific rules and characteristics, start from the main idea, the concept, and ter. Globally, the products are available and extremely feminine while using it.” and we wanted to enter in the best way: then we build the story, we aim to see this in about 70 doors, including Saks Fifth Passion Duo Gloss Fusion Lipstick a rich lineup with several products and new product within the Dolce & Gabbana Avenue in the u.S. It will enter Saks combines a cream lipstick bullet with colors available.” world, we contaminate it with our DNA.” doors in late September. a center of gloss. “Passion Duo is the To most effectively integrate color and The duo consulted with makeup art- “It is of great strategic importance to Dolce & Gabbana woman: passionate, apparel, the duo discuss both at the same ist Pat McGrath on the new additions, as us and to the fashion house that we win extremely feminine and sensual,” said time. “Once we decide the theme for our well as the original collection. in makeup with Dolce & Gabbana,” said Dolce. “A woman who lives in the pres- [apparel] collection, we start to create According to Luigi Feola, vice presi- Feola. “We look at color as part of a natural ent, likes to take care of herself and has the entire look of the Dolce & Gabbana dent of Procter & Gamble Prestige, the expansion of the brand and believe very a strong personality.” woman, from accessories to hair and cosmetics line has grown more than 50 strongly in its potential and its success. The Twenty lip colors in four shade makeup, of course,” said Gabbana. “The percent this year, via new door openings designers also bring strong passion to the families — Nudes to Browns; Reds to way we work is the same for makeup and and higher productivity in existing doors. line, because they feel strongly that color is Oranges; Pinks to Mauves, and True fashion. The biggest part of our job is “The growth rate was beyond expecta- a natural extension of what they do.” Passion — will be offered, each priced talking — we talk about everything.” tions,” he said. While Feola declined Ads featuring Scarlett Johansson, shot $34. Depending on the desired finish, “This season, we worked on the sensu- give dollar figures, industry sources es- by Sølve Sundsbø, will begin running in the cream bullet can be emphasized ality of the contrast between masculine timate that the two new products could September fashion, beauty and lifestyle (for vivid color) or the center gloss can and feminine, and everything was built add as much as $15 million at retail to magazines globally.

Bradley Cooper and Malin Akerman in the story, which was filmed earlier this month. Actresses Team With Glamour to Direct “My 7-year-old niece was getting bullied this year, so shedding light on that was very important to me,” said , Zoe Saldana and Saldana. “We know a lot of people who have kids with behind the camera. Olivia Wilde are stepping behind the some form of autism, so I wanted that to be part of it. camera this month to bring the stories Then, I wanted to integrate what I love in filmmaking of Glamour magazine to life. — motion — so I brought some of my colleagues from The three actresses are each direct- ‘Avatar,’ including my assistant director, my stunt team, ing a short film based on true-life sto- animators and the guys who trained me for the role for ries of Glamour readers (the magazine, help. It took three days to shoot, because even though like WWD, is owned by Condé Nast it’s short, it was the first Glamour film with motion cap- Publications.) The films will premiere ture, stunts and special effects.” on Oct. 24 at the Directors Guild of Wilde — who was named as a face of ear- America Theater in Los Angeles. lier this week — took a practical view: “I think it Longoria is taking on the tale of Alex, will make me a much better actress and it seems like a 35-year-old Glamour reader forced to something every actor should do at least once,” she make a decision about having a double said. “Actors so often walk onto a set and believe that mastectomy. She is casting her film the process starts when we arrive and it ends when we this week and will begin filming in late leave. So I think the greatest discovery is how much August. Longoria said that Alex’s story work happens when the actors are not there. Also, I’ve appealed to her on a number of levels. always kind of mourned the small number of female

“First of all, it was a surprisingly hu- enner directors in this business and I kind of complain about t morous story for such a serious topic. It it a lot without doing anything. So instead of whining also demonstrated the camaraderie and More pictures at about there being a lack of female directors, why don’t close friendship of a group of women Suzanne I become one and create my own story. So it’s been a who are trying to help their friend give WWD.com/ dream for a long time.” her boobs a proper send-off before her Leslie Russo, associate publisher and brand develop-

beauty-industry-news. photo by double mastectomy. And it had a great ment director for Glamour and an executive producer story arc. These are short films, and you on Glamour Reel Moments, noted that the project began need to be able to tell a story in less than 20 minutes.” and “The Baytown Disco,” in which she stars with in 2005. Alums of the Glamour project include Gwyneth While she’s certainly no slouch in front of the cam- Billy Bob Thornton. Longoria is also about to launch her Paltrow, , , era, Longoria said she greatly enjoys working behind second fragrance with Falic Fashion Group (“the first and . Actors, directors and crew donate the scenes. She has executive produced or co-pro- one was clean and fresh, like you got out of a shower. their time to the project, and an underwriter is involved duced six TV projects, including the TV movie “The The second is a little muskier and different — it’s more each year. This year the underwriter is Clarisonic. Philanthropist,” over the past several years and said of a nighttime scent with white musk”) and said she is Chris Payne, vice president of marketing for she is currently developing three TV projects. in talks to do an apparel line, although she declined to Clarisonic, noted that the project was “a great fit” for the Longoria also has two films in postproduction: give details. brand. “Working with the Glamour team to select stories “Cristiada,” a chronicle of the Cristeros War (1926- Saldana’s film, “Kaylien,” is about a young school- from readers and watch those stories come to life helps 1929), which was touched off by a rebellion against the girl who feels like an alien. At the end of the film, it us connect on an emotional level with readers.” Mexican government’s attempt to secularize the country, is revealed that the little girl is autistic. Saldana cast — J.N. WWD FRIDAY, AUGUST 12, 2011 7 WWD.COM

Retailers Nurture Baby, Mommy Segments to Boost Sales new yorK — Baby care is the latest baby care formulas clinical proven and ers and even beyond our own brand,” category crying for attention. dermatologically tested. said Carlo. she suggested Mustela can with retailers looking for new ways duane reade has also been success- be the category leader and help retail- to plump sales in tough times, baby and ful with Mustela. Currently, Mustela is ers create an entire mom and baby care mommy care is a department more want carried in duane reade within the ma- enclave within the store. “and because to nurture. Chains including Ulta, duane ternity area. However, duane reade Mustela is the leader in this unique area reade, wal-Mart and walgreens are among look Boutiques will also be ex- of premium skin care, we are investing in those indicating baby and mom care is panding mom and baby sec- a retail strategy that reflects this vision.” set to expand, joining other emerg- tions. duane reade’s par- to validate Mustela’s expertise, she ing product classifications such ent walgreens is expected cited a recent consumer study across the as teen, premium skin care and to enlarge its offering for U.s. which concluded today’s consumer do-it-yourself beauty as those babies and moms, accord- wants easy access to favorite brands and getting more space in newly re- critical ing to shannon Petree, will cross channel shop for convenience. modeled doors. divisional vice president Prior to this rollout, Mustela was pri- “we were so pleased to add by and general merchandise mary available in specialty stores such the new category of mother Faye Brookmanmass manager for beauty. as Bluemercury, Giggle, upscale pharma- and baby to our stores this sum- Ulta and duane reade cies and department stores — as well as mer. the category is in a major- are among the first to enrich online. Mustela plans to build awareness ity of Ulta doors,” said Heather baby and mom offerings beyond in the new departments with samples, Holubek, senior buyer prestige traditional mass lines such as gifts with purchase, online trial, in store skincare for Ulta. the anchor of Johnson & Johnson by adding communications and social networking. Ulta’s program is Mustela, a 60-year upscale brands such as Mustela. what’s been unique about Mustela, ac- old brand with a history of deliver- other baby and mom lines cording to Carlo, is the brand has kept its ing dermo-cosmetic products to are expected to follow such as premium image while expanding into the newborns, babies, children, mothers Bethenny Frankel’s skinnygirl outlets consumers desire to shop. in other to be and new mothers. Mommy collection. rite aid has words, just because Mustela is available The Mustela display at “in creating the mother and revamped its private label baby in chain drugstores, shoppers don’t have Duane Reade and Mustela baby category, we looked to brands care under the tugaboos name, a different image of the brand. “we have Stelatria Purifying Recovery that are highly respected and offer and navarro has Vida Mia target- demonstrated that a premium brand can Cream (inset). products that meet the needs of ed at its large latino following maintain its high-end positioning while ex- the pregnant customer and new and including baby care items. tending accessibility for the added conve- mom as well as baby. Mustela cer- as drug chains look to bridge nience of the changing consumer,” she said. Baby care products exceed $400 tainly fit all of these criteria and health, wellness and beauty, baby the newest product in the lineup is million in food, drug and mass stores we are delighted to offer its prod- and mom care is becoming a cat- Mustela stelatria Purifying recovery (excluding wal-Mart), according to ucts to Ulta customers both in our egory of interest. Cream, which is backed with research symphony/iri Group. sales are almost stores and online at ulta.com,” Mustela is the lead vendor in showing it helps regenerate and restore equally divided among food, drug and added Holubek. duane reade’s look Boutique, but skin and reduce appearance of scars. it mass — suggesting the channel that Following a 30-store test of the department will feature ad- hits shelves next month with a suggested jumps out front in presentation could Mustela’s 9 Months collection, Ulta ditional brands, according to Judy retail of $18.50. steal some share from competitors. while has given the green light for a full Carlo, Mustela managing director of Celebrities rely on Mustela products the national Center for Health statistics rollout of Mustela. with the expan- U.s. and Canada. with moms including Gwyneth Paltrow, reported a decline in the U.s. birth rate, sion of the brand in Ulta, shoppers “we envision a burgeoning fu- Kerri russell, Molly ringwald, rebecca retailers said they expect to see mothers will have access to an extensive ture with mother and baby sections romijn, tory spelling, denise richards spend more on their offspring and their array of maternity, stretch mark and expanding to other selective retail- and Melissa Joan Hart among loyal users. own needs related to childbirth.

Gibson to Open Salon in Florida Arden, Claiborne Rework Licensing Deal Hairstylist and salon owner ted Gibson has signed a deal with w Fort lauderdale & residences in Florida to lease space there crease its investment behind the fragrance for a new ted Gibson salon slated to open in november. it will join By eVan ClarK and Molly Prior brands licensed from Claiborne. regarding Bliss spa as one of the hotel’s beauty retreats. arden’s decision to purchase Curve, Beattie the salon measures about 2,000 square feet with 12 stations and liz ClaiBorne inC. raised $58.4 million in said, “it’s a stand-alone fragrance business will offer l’oréal Professionnel hair color, including inoa, as well as cash from elizabeth arden inc., agreeing to so it made sense to buy that out.” Beattie Gibson’s hair care range. accept lower royalty payments on fragrance expects the transaction to begin to benefit the new location will bring his salon count to two (there’s also ted businesses tied to its brands — including arden’s earnings in fiscal 2012, and more Gibson salon in Manhattan). His washington, d.C., salon was closed Juicy Couture and lucky Brand — and trans- significantly in 2013. earlier this year — it is now the Hela spa salon — after almost two ferring the trademark for its Curve fragrance arden ended its fiscal year on strong footing. years in operation. to arden. For the three months ended June 30, Hair colorist Jason the deal will help Claiborne pay down arden’s net income was $5.4 million, or Backe, chief executive of- some of its debt and clears the way for arden 18 cents a diluted share, up from $2.3 mil- ficer of ted Gibson, ex- to invest more into the licensed fragrance lion, or 8 cents, in the year-ago quarter. net plained the salon’s closing. brands. arden also reported thursday that sales in the quarter gained 11.2 percent to “the d.C. salon was a both fourth-quarter and year-end profits more $253.8 million, from $228.2 million in the licensing deal with the than doubled. year-earlier period. excluding the impact brand of ted Gibson re- For Claiborne, the deal could be a prelude of of foreign currency translation, net sales sponsible for branding, more to come. the company is already in talks gained 7.7 percent. training, image and p.r. to sell a majority stake in its Mexx division. For the year, net income also more for the location in ex- “the fact that they were able to get $50 than doubled to $41 million, or $1.41 a change for a monthly fee. million [in the arden deal] was a surprise,” diluted share, from $19.5 million, or 68 when ownership of the said Jim Chartier, an analyst at Monness, cents a share, a year ago. sales for the location changed, the new Crespi, Hardt & Co. inc. “i think the turn- year gained 6.5 percent to $1.18 billion, or owners insisted on chang- around’s on track, but it’s probably in their 5.9 percent excluding the impact foreign ing the terms of the li- The Ted Gibson salon at W Fort best interest to continue to sell some of these currency translation, driven by gains in cense. the new terms did Lauderdale & Residences. noncore assets.” north american and international sales. not reflect the standards the amendment to the 2008 licensing revenue in north america gained 5.2 per- of the ted Gibson brand agreement also includes the transfer of other cent to $756.7 million, outpaced by inter- as we see it, so sadly we were forced to terminate the relationship smaller fragrance brands to arden, a reduc- national sales, which gained 8.9 percent to and pull the license.” tion in the minimum guaranteed royalties $418.8 million. Gibson’s product line, which includes hair care and styling tools, and the prepayment of certain royalties. in a bid to meaningfully reinvent the continues to be carried online and at his salon. the changes could be a boon for arden, mass market fragrance business, arden is with fashion week right around the corner, Gibson is planning an which benefits by owning the Curve fra- currently rolling out scent tester bars to key all-day event for Fashion’s night out from his Manhattan salon with grance business outright and from the lower mass retailers. one of his a-list celebrity clients. He will be styling the spring shows for royalty fees on Claiborne licenses. during arden also is gearing up for the in- lela rose, Carmen Marc Valvo and rachel roy this season. Gibson will the company’s earnings call on thursday, troduction of ’s fragrance remain the beauty transformer for tlC’s “what not to wear,” which arden chairman, president and chief execu- wonderstruck, which will launch in prestige premieres its new season aug. 16. tive officer e. scott Beattie told analysts that stores in the U.s. this fall, followed by an in- — AndreA nAgel lower royalties will allow the company to in- ternational rollout in 2012. 8 WWD FRIDAY, AUGUST 12, 2011 WWD.COM The Original 3-Panel Strappy Tank that Yummie Tummie Founder Speaks Out on Settlement provoked the lawsuit. any third party that may seek to invalidate called Reznik, he is said to have offered By KARYN MONGET or render unenforceable the patents. to arrange another meeting, but it never Litigation began in March 2010 when took place. THE $6.75 MILLION settlement agree- Maidenform fi led a lawsuit in Manhattan Offi cials at Maidenform could not be ment revealed Wednesday between federal court seeking a declaratory judg- reached. But Maidenform said Wednesday Maidenform Brands Inc. and Three ment that its Flexees Fat Free Dressing in a conference call with analysts that prof- Times Clothier LLC has given closure to Tank did not infringe on a design pat- its in the second quarter fell by 15.3 per- Heather Thomson-Schindler, founder of ent held by Times Three. At the time, cent, impacted by a special charge to settle Yummie Tummie shapewear. Times Three held one design patent for its litigation with Times Three Clothier. Thomson-Schindler, who serves as the three-panel Strappy Tank, and it now In a discussion with analysts during Times Three’s president and chief execu- holds four patents with another pending the conference call, Reznik discussed tive offi cer, called the settlement a “vic- for the Yummie Tummie franchise. the settlement. tory” for entrepreneurial designers and Thomson-Schindler told WWD that “The settlement was not an admis- innovative fashion apparel companies. she designed the three-panel control sion of wrongdoing by either party, but “It’s a win in general for tank top for herself when refl ected the signifi cant legal fees and innovation and I’m very she couldn’t fi nd a shaper management time that would have to be proud of it. I think there Heather to smooth her post-mater- devoted to continue to vigorously defend are a lot of new designers Thomson- nity figure. Times Three the lawsuit,” said Reznik. “In connection and companies that have Schindler countersued in September with the lawsuit, we paid Times Three new ideas but are scared 2010 in Manhattan federal $6.75 million. We are very please to put to death their ideas will court, accusing Maidenform this litigation behind us and focus all of be taken away from them,” of copyright design patent our efforts on growing our business.” said Thomson-Schindler, infringement. For the second quarter ended July 2, who started her fi rm on a Times Three said in Maidenform’s income decreased to $11.6 The Fat Free Dressing shapewear by shoestring budget in 2008. court papers that Thomson- million, or 50 cents a diluted share, from Flexees, as well as other Maidenform “This is my new em- Schindler and her business $13.7 million, or 59 cents, last year. The liti- shapewear product, is carried in stores blazoned passion — I partner, Eric Rothfeld, gation charge of $4.1 million settles patent such as Macy’s, Bon-Ton, Kohl’s, J.C. am planning to work met with Maurice S. infringement and invalidity lawsuits that Penney, Belk and Sears. Times Three’s with Stephen Kolb at the Reznik, ceo and director the two litigants fi led against each other. product is sold at Neiman Marcus, CFDA and I want to go to of Maidenform, on Jan. 29, Excluding the charge, diluted earnings per Bloomingdale’s, Saks Fifth Avenue, Congress to help pass laws to protect de- 2009, to discuss Maidenform’s possible ac- share would have been 67 cents for the Nordstrom, Dillard’s and Penney’s, signers and their innovative ideas…they quisition of Times Three and the Yummie quarter versus 59 cents a year ago. Sales among other stores. have no protection,” she stated. Tummie designs. Reznik indicated that rose 13.8 percent to $170 million from $149.4 “I think this will open more retail The litigation involved Maidenform’s Maidenform had about $40 million avail- million. The company said shapewear doors and more opportunities in the retail multimillion-dollar Fat Free Dressing by able for acquisitions, but Rothfeld said sales rose 33.2 percent. It also said sales at environment for Yummie Tummie.…Now Flexees line and Yummie Tummie, a con- that sum was too low given the popular- department stores and national chains in- Maidenform is no longer producing three- temporary shapewear line from Times ity of the shapewear and Times Three’s creased 9.8 percent, while those at the mass panel tanks in their Fat Free Dressing Three that has estimated wholesale sales of growth potential, according to the suit. market channel gained 29.1 percent. line. They are only doing two panels. We $20 million, according to industry sources. Reznik allegedly expressed continued For the six months ended July 2, prof- needed to bring in this settlement with The settlement ends patent infringement interest in Times Three, but in July 2009, its grew 1.2 percent to $26.1 million, or one of the biggest companies and draw and invalidity lawsuits that the companies Times Three executives “became aware $1.12 a diluted share, from $25.8 million a line in the sand. Other companies will had fi led against each other last year. As a of the accused Maidenform garments,” or $1.10 a year ago. Sales rose 14.1 per- see this and say, ‘OK, I’m not playing this result, Maidenform has agreed not to assist the suit said. After Thomson-Schindler cent to $333.6 million from $292.3 million. game,’” said Thomson-Schindler.

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sponsored by: WWD STYLE Alice + Olivia Fetes New Shoe Line PAGE 11 MEMO PAD

REMEMBER WHEN — AND RETWEET: “For a few weeks in March and April, a strange fad took hold in the headquarters of Condé Nast Publications at 4 Times Square,” wrote Warren St. John in during the spring of 2003. “After sharing elevator rides with Anna Wintour, the editor in chief of Vogue, Condé Nast employees sat down at their desks and typed accounts of their vertical journeys with the fashion icon,” he continued. St. John was describing Gawker’s Elevator Chronicles and, more broadly, a new swath of New York media — what he called the “New York School of bloggers.” The Elevator Chronicles and other Gawker posts moved the cult of personality around Condé Nast editors online. That same year, Lauren Weisberger published “The Devil Wears Prada,” and the book became a movie. Four years later, Condé Nast published the thickest September issue of Vogue ever and that book became a movie, too. The blog and book were snarky, yes, but they were also an homage to the company’s power. Then the seas changed for the magazine world. McKinsey consultants and magazine closures followed and this year the company lost its position as this city’s top privately held fashion magazine publisher in terms of market share to less-glamorous Hearst. Over the years, Condé Nast intrigue online has turned more than a few corners. But last weekend, more than eight years after the genesis of the Elevator Chronicles, someone on the Internet again began recording vignettes from Condé Nast’s elevators. This time, instead of sending their elevator stories to a poorly salaried blogger working at home, Condé Nast employees were sending the fruits of their eavesdropping to a Twitter account started and maintained (most likely but not certainly) by one of their own. Someone inside Condé Nast had taken up the mantle of mythologizing the company on the Internet. An audience emerged immediately. The @condeelevator account grew fast — 10,000 followers turned into 30,000 in one 24-hour period and the audience climbed over 60,000 in the accounts’ fi fth day. ABC News, The Daily Beast, The New York Observer, New York Magazine, The New York Post, the Dutch edition of Elle magazine, Russian Vogue and the Daily Mail among others wrote about the feed. Twitter was aroused by this weird taste of 2003 in 2011. The Internet felt punk again. Then muscle memory went to work. Gawker, which has moved on to writing about things that get more page views than elevators at media companies since 2003, started to dig around for the anonymous elevator tweeter’s identity. Other blogs joined in and by Thursday, speculation about who was running the account brought it to an early end. “Love my job. Better stop,” the anonymous tweeter wrote, signing off. But the fear of the company — scary Condé Nast — retaliating was largely imagined online. One Condé Nast freelancer, Andrew Krucoff, remains the only person to ever lose a job, a research gig, for leaking to Gawker. If anything, the company actually seemed delighted by the attention that was coming from the anonymous feed. “We have no idea if this is real or made up and don’t know who is behind it, but it certainly suggests that many people care a great deal about what happens at Condé Nast,” a Condé Nast spokeswoman said in a statement to the outlets that were writing about the feed on Wednesday. “There was no concern, and there was no witch hunt,” Patricia Steele, Condé Nast’s senior vice president for corporate communications, said on Thursday afternoon. Comparisons between 2003 Gawker and an anonymous Condé Nast staffer on Twitter in 2011 can’t go very far. The @condeelevator had none of the bite of the Gawker version. The vast majority of the quotes from inside the elevator weren’t sourced to real people, just Condé Nast archetypes (the dudeitor; someone in a linen blazer; The ‘O’ Team the intern). The feed was more interested in saluting the relics of About 50 designers and celebrities — including a confi dent Jimmy Fallon — turned the company’s past — Town Cars, helicopters to the Hamptons and out for a fund-raiser for President Obama at Harvey Weinstein and Georgina small lunches of lettuce and carrots from the Frank Gehry cafeteria. One of the most prescient tweets out of @condeelevator’s short Chapman’s West Village town house Thursday night. For more, see page 10. life came from one of the feed’s fans, someone named Breanna Monique, who tweets as @dungeon_dragonb and has nothing to do with the company. “The funny thing about that @condeelevator is I was just Wikipediaing Anna Wintour and watching the ‘Devil Wears Prada’ yesterday,” she wrote on Thursday. The feed’s brief time represented a medieval moment for the Internet, a recycling of culture to the point that it’s diffi cult to remember what was so great about the original. Meanwhile, a company that often seems to be wrestling with not capitalizing on the Internet had a defi nitely brief but nevertheless self- deprecating and attention-grabbing moment on Twitter. The Internet was once again intrigued with Condé Nast and it was a nice harkening back to the salad days of 2003. A Hearst PHOTO BY STEVE EICHNER account emerged on Thursday. At presstime, @hearstelevatorz had just more than 500 followers. — Zeke Turner 10 WWD FRIDAY, AUGUST 12, 2011

Gwyneth Whistle Stop Paltrow THE EXTENDED fashion set came out to pay their respects — and a reported $71,500 per couple — to President Barack Obama at a fund-raiser at Harvey Weinstein and Georgina Chapman’s West Village townhouse Thursday night, where Anna Wintour was also co-hosting. Among those who turned out for the Bank Street bash were Tor y Burch and Lyor Cohen, Gwyneth Paltrow and Chris Martin, Pharrell Williams, Aerin Lauder, Kenneth Cole, Alicia Keys, Gayle King and Jimmy Fallon. After stopping by the Ritz- Carlton for another fund-raiser, the President was scheduled to arrive at Weinstein’s pad at around 7:10 p.m., give a presumably brief set of remarks and leave New York by 9:10 p.m. Quite a profi table few hours.

Alicia Keys

Pharrell Williams Andrew Rosen Tor y Burch ACRIA’s Young Friends Sign Then Dine THE SUN SLOWLY inched boyfriend Ben Pundole’s new into the Hudson River and Montauk-based “summer illuminated the glass windows camp for adults,” was eager to and roofs of western Chelsea, share insight from “Tapped,” casting the brand-new Hôtel a documentary she had seen Americano in rose and then about the purported deceit of Bibhu bruise-colored tones on the bottled water industry. Mohapatra Wednesday night. It did little to “They’re just too rich and illuminate a mystery presented nobody’s watching,” Leyland to guests upon entrance. bemoaned of the companies, “First, please just sign this “Clean drinking water is a basic waiver,” a petite woman in a human right, not a commodity. hotel uniform said as she greeted And we just drink this stuff, not the Young Friends of ACRIA, knowing what it’s doing to us.” headed to a dinner to celebrate Francisco Costa, a longtime the one-year anniversary of the friend of ACRIA, surveyed the youth group associated with scene but left before dinner the AIDS Community Research began, pausing to greet Prabal Hailey Gates and Waris Ahluwalia Initiative of America. Gurung and Maggie Betts on his “It just says that we’re not way out. Betts was clad in a open yet,” she went on. “But you two-tiered black satin cloud of Marjorie Gubelmann Joseph and Chris Benz can’t come in until you sign it.” fabric, which she had created Altuzarra With visions of plummeting by combining a piece from off the roof or pieces of metal Gurung’s latest collection with scaffolding raining down on Lanvin from her closet. eye unsuspecting heads, the woman “It’s not a dress, but was asked if the form was a everybody thinks it is,” she release from liability. laughed. “It’s just that we’re not Angel Otero, Bibhu Mohapatra, done yet,” she chirped before Chris Benz, Marjorie Gubelmann scuttling away. and Jason Wu were all on hand The expansive roof-terrace for the dinner, which ended and its enviable panoramic with some vigorous dancing views seemed to be stable poolside. At a table facing enough to play host to a small north, as the lights of Times swarm of designers, artists Square crested over buildings EICHNER and socials who encircled a in the distance, Waris Ahluwalia small lap pool and adult-sized was in pains to describe his STEVE bean-bag loungers. Chelsea jewelry line to the uninitiated. Leyland manned the DJ booth, Grinning triumphantly, he where the dyed-purple tips fi nally decided. of her bleach-blonde hair “It’s halfway between undulated as she skipped along incredible and beautiful,” to the music. Leyland, who Ahluwalia explained. “That’s has spent most of the summer pretty modest, right?”

OBAMA AND ACRIA PHOTOS BY months at Ruschmeyer’s, her — ALESSANDRA CODINHA WWD FRIDAY, AUGUST 12, 2011 11 WWD.COM

a former heroin addict tote priced 2,245 euros, or $3,200 at FASHION SCOOPS in “Sexy Evil Genius,” current exchange. Salvatore Ferragamo will showcase a pair of is bringing a craftsman from Florence studded platform pumps to take custom orders, while children’s she designed for Stuart wear brand Bonpoint will host garland- ON YER BIKE: InStyle’s annual Los to dress inappropriately Weitzman at Fashion’s making workshops for kids. De Beers Angeles Summer Soiree bash was and act obnoxious,” Night Out in New York. will present exclusively its Swan Lake a welcome distraction during an Roberts said of her Zelda Williams is testing her collection of diamond jewelry, while otherwise sleepy August in Tinseltown character, who wears fashion limits for a Web Swiss watch brand Girard-Perregaux (of course when it rains it pours, so Alice what she described as comedy series in which will stage an exhibition, “Tourbillon,” to + Olivia and Kate Spade and Current/ “a lot of bright bras and she plays a Wal-Mart mark its 220th anniversary. Elliott also had parties the same night), high heels.” Roberts employee donning, in drawing an arm-long list of actresses cleaned up nicely in her words, a “superplain BETSEY’S ELOISE DAY: The Palm Court currently at work on TV shows or a black and white tea color polo shirt and black at The Plaza was a riot of pink-striped promoting movies. Jenna Elfman, fresh dress by Kate Spade Dickies and comfy shoes.” hatboxes, stuffed animals, fl utes from promoting “Friends With Benefi ts,” New York to co-host a of rosé Champagne, tiered stands showed off photos of her son as she said, dinner at Petit Ermitage PRINTEMPS GETS CRAFTY: holding macaroons, chocolate-dipped “I’m trying to savor the last of summer.” in West Hollywood on Printemps is shining a strawberries and scones last week Jessica Chastain hung out with her “The Wednesday. The guests of spotlight on luxury with for Betsey Johnson’s celebratory tea Help” co-stars Ahna O’Reilly and Allison honor were her longtime fall window displays party for the one-year anniversary Janney, whom she hadn’t seen since stylists Emily Current and and in-store events of the hotel’s Eloise suite, which she fi lming wrapped last year. “We had to Meritt Elliott, who launched that celebrate top-level designed. get our picture taken in the photo booth a bag collection called craftsmanship. Brands “ I have been working my little because it’s the most amazing lighting,” Westward with Kate including Celine, Chloé, ass off,” Johnson laughed. “I keep said Chastain, examining the black-and- Spade New York just the Alexander McQueen, saying, ‘Next year won’t be the same,’ white print. “Everyone looks gorgeous.” day before. Gucci, Lanvin, Miu but it will. I love it, but my dream in Which was a good thing since the images “We love bags, we buy Miu, Balenciaga and this life is to take a month off with were projected onto the white wall of bags,” Current said of her Alexander Wang will the grandkids, take them to Africa or The London Hotel rooftop where the jump into bag designing. Jamie King in Jason Wu and showcase a single something. Not just to the backyard in party was held. “Some bags [in Westward] Emma Roberts in Kate Spade. iconic item from their East Hampton.” The advantages of an open-air party are perfect for a portfolio, collections in window They certainly won’t be shacking up are many, including permitted smoking. laptop and a pair of fl ats. Gia displays scheduled to run in the Eloise suite anytime soon. The “It’s not very InStyle,” commented one Some bags are perfect Coppola in from Aug. 26 to Oct. 8 at room — which boasts, among other guest of the jars of cigarettes provided for the red carpet,” Topshop. the Paris fl agship of the amenities, a sparkly pink headboard, on the tables. “Well it’s relaxing and Elliott added. Kate French department store neon sign above the bed and starts at everyone was relaxed,” replied stylist Spade New York creative chain. The windows of $1,125 a night — is booked solid until Jessica Paster. One actress not lighting director Deborah Lloyd the adjacent Printemps next year. up was Erika Christensen, who instead said partnering with the de l’Homme men’s “They sold out in September of fi lled a plastic bag with over a pound stylists, who also founded wear store will feature last year until now,” Johnson said. “I of candy from the self-serve bar on the L.A. premium denim label leather goods by the wanted to have a party with, like, 30 way out. She and her date even tore Current/Elliott, allowed likes of Gucci, Prada kids, now I can barely get in. Though into the gift bag at the distribution table Kate Spade to tap into and Coach. The main I don’t know if it’s Eloise or Charlie before deciding they actually didn’t what she characterized as Printemps store will host Sheen…when I heard Charlie had need the Clarisonic skin care brush and the “L.A. chic that girls in a workshop celebrating trashed a room at the Plaza, I thought Essie nail polish. “I love Essie, but I New York aspire to.” Gucci’s 90th anniversary, it was Eloise’s, and I was thinking don’t need to take this,” she said. Once L.A. chic was on with demonstrations ‘Oh, that’s not so good….’ All the walls downstairs in the hotel’s driveway, the full display with guests by artisans who will be are hand-painted, custom fabrics, reason for her desire to travel light including Jaime King, Ali hand-fi nishing some of the one-off prints, you know. But it was became apparent. “We’re going to get Landry, Sasha Spielberg and brand’s most recognizable actually Denise Richards and her kids out of here so much faster than everyone Roberts’ boyfriend, Chord handbags and offering staying there, and Charlie across

waiting for their cars,” said Christensen Overstreet. Other famous SARDELLA/WIREIMAGE customers a personalized the hall. Luckily. Or not so luckily? as she swapped her heels for biking attendees played a role in initials service for Though Denise just named her adopted shoes and took off on her bike. the fashion industry. Gia a limited period. A daughter Eloise, too.” DONATO Coppola recently directed Balenciaga pop-up store Johnson just found out she’ll be doing CALIFORNIA GURLS: Having grown up a short fi lm for California near the store’s entrance the hotel’s Christmas tree. It’s not the in Hollywood, Emma Roberts has been fashion label Wren, while will sell accessories only big event she has to look forward relatively scandal-free. That is until she Michelle Trachtenberg, specially designed for to in the near future. “I’m turning 69 on

hits the big screen as a pop star in the who will portray a drug PHOTOS BY SPADE Printemps, such as a Wednesday,” the designer said with a fi lm “Celeste and Jesse Forever.” “I got dealer on “Weeds” and yellow fl uorescent python grin. “I’m a Leo. Like Obama.” KATE

Aly Michalka and Katie Cassidy in Party Shoes Alice + Olivia.

STACEY BENDET GATHERED a gaggle of starlets at Palihouse in Los Angeles For more career opportunities log on to WWDCareers.com. to toast Alice + Olivia’s new shoe line on Wednesday night, and while DJs and face painters kept the crowd entertained, the designer didn’t stop working for a minute. Spaces “When I saw the shoes on Stacey, that sold me,” said Amber Lancaster. “She makes you want to wear what COMMERCIAL she’s wearing.” REAL ESTATE Bendet’s sparkly silver mary janes were one of the styles available for guests to preorder, gratis. But even if they weren’t free, they wouldn’t break the bank, which was a good thing in Showrooms & Lofts BWAY 7TH AVE SIDE STREETS Aimee Teegarden’s case, since she wanted Great ’New’ Office Space Avail To subscribe, visit our website “to take home, like, 20 pairs.” ADAMS & CO. 212-679-5500 “There weren’t any cute dress- www.wwd.com/subscribenow up shoes in the contemporary price range,” said Bendet, adding, “Look, or call 800.289.0273 I’m not the most price sensitive person, but your shoes shouldn’t cost 10 times as much as your dress.” Lauren Conrad, who hawks her own line of accessible clothing, Paper SALES REP Looking for inhouse sales rep to carry Crown, agreed. “I have to say I own a our junior, missy, girls (7-16) line, do- pair of J. Crew wedges that make very mestically produced in USA, who is well For group rates, contact Richard Franz at [email protected] experienced, diligent, communication frequent appearances.” & follow up is excellent. Jeff (213) Other guests viewing the wares while 880-0234 [email protected] Mia sipping Activate (apparently the vitamin-

Moretti in AMY GRAVES infused water du jour) through straws Alice + Stacey BY included Jordana Brewster, Aly Michalka, (800) 423-3314, or email [email protected] Olivia. Bendet Shenae Grimes and Jennifer Love Hewitt.

PHOTOS — MARCY MEDINA 12 WWD FRIDAY, AUGUST 12, 2011 WWD.COM Botkier Takes Action Against Kardashian Line U.S. Textile, Apparel

designers to do anything against mass retailers or By RACHEL STRUGATz megabrands. It really calls attention to what Steven Imports Drop 8.4% Kolb and the CFDA are really working towards — WASHINGTON — Textile and apparel imports to MONICA BOTKIER is on a crusade to protect Botkier’s its not necessarily about sticking on a fake label, the U.S. fell 8.4 percent to 4.7 billion square meter her designs. Clyde bag. you are actually taking someone’s design idea,” equivalents in June from a year earlier, as many of On Thursday, the designer sent a cease Botkier told WWD. “This definitely hurts the top 10 supplier countries — China, Bangladesh, and desist letter to Sears Holdings people in the industry and it makes it Indonesia, South Korea and Pakistan — posted Corp., the exclusive retailer of Kim, more difficult that you can’t protect it significant declines, the Commerce Department’s Kourtney and Khloé Kardashian’s by law. The CFDA is working on try- Office of Textiles and Apparel said Thursday. handbag line Kardashian ing to change these laws and make Sourcing has continued to shift away from Kollection, after Botkier discovered designs more protected.” China in the past year, as rising labor and trans- a style from the reality stars’ collec- She is adamant about designers portation costs have driven business to other tion that she contends is nearly legally being able to protect their Asian competitors such as Vietnam, which, along identical to a bag from her own. designs, more boutique brands with Mexico, were the only top 10 supplier coun- Sears declined to comment. in particular. Botkier does ac- tries where imports to the U.S. rose in June. On Tuesday, Botkier was knowledge that it’s a unique sit- Total apparel shipments fell 7 percent to 2 bil- flooded with e-mails from uation because the Kardashian lion SME compared with June 2010, while textile friends and fans about a story in sisters — who are very much shipments dropped 9.4 percent to 2.6 billion SME. the U.K.’s Daily Mail about the in the public eye — might not “Retailers might have already seen a weakness similarities between a silhouette even be aware of everything in consumer spending and, as a result, they decid- from Kardashian Kollection’s fall they’re putting their name on. ed to order less apparel,” said Gregory Daco, prin- offerings and the Clyde, one of the original styles the brand “All designers deserve the right to design protection cipal U.S. economist at IHS Global Insight. “The launched when Botkier founded the company in 2003. and only the creator of an original design should profit fact that there were less apparel imports in June “In a case like this, it’s upsetting because it’s a trade- from that design. Taking someone’s work and calling it would mean there were less ordered in April.” marked shape for us, and people recognize it by sight. It’s your own is wrong and robs the designer of a rightful re- The overall trade deficit widened to $53.1 bil- a lot more complicated because it’s hard for independent turn of their investment,” the CFDA’s Kolb said. lion from $50.8 billion in May, marking the largest trade deficit since October 2008, according to Daco. Combined apparel and textile shipments from China fell 10 percent to 2.3 billion SME, as apparel imports fell 9.8 percent to 864 million SME, while Uniqlo Readies for 5th Ave. Flagship Opening textile imports fell 10.2 percent to 1.4 billion SME. Among the top 10 suppliers, combined ap- million a year — a record at the time. The Japanese retail parel and textile shipments from Pakistan fell By SHARON EDELSON giant has been aiming to attract attention with projects 17 percent to 228 million SME, imports from like the High Line Rink — Made for All by Uniqlo, an out- Bangladesh dropped 14.7 percent to 138 million NEW YORK — Manhattan, meet Uniqlo — the Manhattan door roller skating rink under the High Line that opened SME, goods coming from South Korea fell 14.3 beyond SoHo, where Uniqlo’s inaugural store opened in last month and will close on Sept. 26. percent to 109 million SME and imports from 2006, that is. “Uniqlo Counts Down Toward Flagship Opening” is the Indonesia fell 8.5 percent to 134 million SME. In advance of unveiling its 89,340-square-foot flag- message on a microsite that lists the addresses and hours Combined shipments from Vietnam, the num- ship at 666 Fifth Avenue in of the pop-up shops. ber-two apparel supplier to the U.S., which has the fall, Uniqlo is greeting The retailer is planning been gaining share on China, rose 5.4 percent to neighborhoods with a series The High Line Rink — to open a third Manhattan 266 million SME, as apparel imports edged up 0.2 of pop-up stores. Made for All by Uniqlo. store on 34th Street be- percent to 163 million SME and textile shipments Three Uniqlo tempo- tween Fifth and Sixth rose 14.6 percent to 103 million SME. rary brand shops will re- Avenues in late fall. “We seem to be on a bit of a roller-coaster ride main open through early Karen Bellantoni, a re- this year because imports were strong in January,

fall. They include an mage tail broker at Robert K. they fell in March and now they are falling in i 11,500-square-foot tem- Futterman & Assoc., who June,” said Julia Hughes, president of the U.S. porary space at 115 Fifth represented the landlord, Association of Importers of Textiles & Apparel, Avenue, between 21st and Eretz Group, along with noting that imports are typically up in June due 22nd Streets in the Flatiron Eretz in-house representa- to back-to-school business. “Maybe what we are District, that opened Aug. 5. tive Melissa Rose, said, “We seeing is companies pushing back deliveries so The space has 4,500 square can grow the space to ac- they can try to be even more conscious of what feet on the ground floor, Desiree Navarro/Wire commodate them.” However, the consumer really wants.” 4,500 square feet on the a source close to the retail- Observers have also said there has been some

lower level and 2,500 square Photo by er said, “Permanent is not shift back to domestic textile manufacturing, feet on the mezzanine. the objective. [The pop-up] which could have put a small dent in imports. Temporary stores are also popping up at 1880 stores are just to get people familiar with Uniqlo. They’re Hughes noted that it was surprising there was a Broadway and 62nd Street near Columbus Circle, and doing it for brand awareness. This is an attempt to get into 2.8 percent decline to 4.1 billion SME in apparel im- 2385 Broadway, between 87th and 88th Streets. Uniqlo is the neighborhoods and shopping areas that aren’t SoHo.” ports from China in the first six months of the year. reportedly close to signing a lease for a fourth pop-up on To give brand awareness an extra boost, Uniqlo is “Obviously, that has a big impact,” she added. the Upper East Side. planting “cubes” that glow from within at strategic loca- “That is larger than a lot of suppliers’ total trade. After opening its SoHo store in 2006, Uniqlo kept a low tions around Manhattan. Four cubes, which open like What we are seeing is what people have been profile until 2010, when it unveiled the flagship on Fifth vaults, were plunked down at the High Line roller skating talking about for more than a year now about Avenue and 53rd Street, for which it agreed to pay $300 rink at the end of July. The cubes contain dressing rooms shifts out of China due to rising prices there.” million over the course of a 15-year lease, or about $20 and sell a variety of merchandise. — kristi ELLis

Obituaries Charles C. Bowlus, ECRM Founder CHARLES C. BOWLUS has unex- a more personal and intimate Mark Waldrop, SVP at Jones New York pectedly died following compli- relationship that redefined and NEW YORK — Mark Waldrop, senior vice presi- Technology and the University of Virginia, and cations from surgery, according became the benchmark for con- dent of design for knitwear for the Jones New guest lectured at Parsons and FIT. to his son, Mitch, who is presi- ference,” she added. York Collection, died Friday at Memorial Sloan- “Mark was an extremely talented designer and dent of ECRM, a firm that Bowlus Roy White, a former editor of Kettering Cancer Center. He was 52. an integral part of the Jones family,” said Susan founded. He was 64, according to a major drugstore publication The cause of death was complications from non- Metzger, chief executive officer of women’s whole- published documents. added, “He had the unique per- Hodgkins lymphoma, said his partner, Jeffrey Libby. sale sportswear for Jones. “His passion for design Bowlus was chief executive spective of knowing the retail and Waldrop was born into a military family in and a natural ability to know what women wanted officer of Efficient Collaborative distribution side first hand.” Quantico, Va., his father serving as a colonel in to wear made him a tremendous asset, but it was his Retail Marketing Inc., which stages A graduate of Ohio State the U.S. Marine Corps. Waldrop graduated from kind and generous nature that set him apart. Mark industry meetings called Efficient University, Bowlus began a career in the University of Georgia with a degree in land- always made you feel like a treasured friend wheth- Promotion Planning Sessions. retail in a Revco warehouse. Taking scape architecture design. For a short time, he er you knew him for five minutes or five years.” What began in 1994 as casual, positions that brought increasing worked in that field but then began working in Angela Baldanza, senior vice president of 20-minute meetings covering a few responsibility, he also worked at window dressing and display at Rich’s in Atlanta. merchandising at Jones, added, “He was an ab- core retail categories mushroomed Gray Drug, Target, Cook-United and He quickly realized he loved fashion and at- solute perfectionist, he was driven and had the into dozens of shows including a Boston Distributors, where he was tended the Parsons School of Design, where he utmost loyalty. He would always have the best major international presence. executive vice president. received the Golden Thimble Award, presented advice and was an amazing mentor.” Beyond the meetings, Bowlus An e-mail statement from by Donald Brooks, upon graduation in 1987. Waldrop loved gardening and designing gar- ushered in technology driven Mitch Bowlus said, “My father Waldrop’s first job in the industry was with dens, and had a home in Provincetown on Cape tools to streamline the buyer-sell- and life-long business partner has Carolyne Roehm, and he later worked at Perry Cod where he went every weekend. “We have a er process. “He was the man who left us, but his unshakable faith Ellis. Afterwards, he joined Jones Apparel magnificent garden he designed, and he planted changed the industry in terms of in the values of this company and Group (now known as The Jones Group), where the entire garden,” said Libby. manufacturer and retailer rela- the character of our people has he worked for 20 years. He was responsible for In addition to Libby, Waldrop is survived by his tionships,” said Wendy Liebmann, laid for us a stronger and better knitwear design for Jones New York Collection, sisters, Judy Williams and Col. Marianne Waldrop, founder of WSL Strategic Retail. foundation. As my father would Joneswear and Evan-Picone. Waldrop served and brother Harold. “He found missed opportuni- always say, the show must go on.” as a critic at Parsons, the Fashion Institute of — Lisa Lockwood ties to use technology to create — FayE Brookman