BACK IN TECH OPPORTUNITY THE GAME KNOCKS CHANTAL ROOS STRIKES TIME RENZO ROSSO’S OTB SEES OUT ON HER OWN A RAFT OF TECH IPOS PLENTY OF ROOM FOR WITH A QUINTET OF ARE IN THE WINGS GROWTH DESPITE A DIP IN FRAGRANCES. PAGE 6 IN THE U.S. PAGE 5 PROFITS LAST YEAR. PAGE 4

STRIKE OVER HIGHER WAGES Mass Protest Goes On At China Shoe Plant

By LARA FARRAR

SHANGHAI — No resolution has been reached be- tween one of the world’s largest shoe manufacturers and tens of thousands of workers who are on strike over a benefit dispute at the company’s factories in the southern province of Guangdong. FRIDAY, APRIL 18, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY The Taiwanese-owned Yue Yuen Holdings Ltd., WWD which makes shoes for Nike and Adidas along with nu- merous other global brands, has not responded to in- terview requests regarding a strike among employees that began in early April and has since intensifi ed into a widespread protest involving at least 30,000 workers in Dongguan, a manufacturing epicenter in southern China. Worker rights groups have said the strike is one of the largest in recent history in the country. “It is a very complicated situation,” said Geoffrey Crothall, a spokesman for the Hong Kong-based China Labor Bulletin, which has been monitoring the ongo- ing protests. “It will take time to sort it out.” Crothall added that the situation is highly po- litically sensitive in China, where mass protests are banned and workers are not allowed to organize trade unions not approved by the government. A po- lice presence has been ubiquitous in Dongguan since the protests intensifi ed this week, and some protes- tors at Yue Yuen’s factory have been stopped by po- lice or detained, Crothall said. Calls to employees resulted in little commentary. Most remarked they feared their phones were being monitored by the government and that if they spoke to foreign journalists they risked losing their jobs. The strike has garnered almost no coverage from do- mestic media. When reached by phone, most workers declined to speak. Some said that local non-governmental organi- zations focusing on labor issues are being monitored by the government, and are banned from reaching out to Yue Yuen’s employees. SEE PAGE 12

Italian Beauty Firms See Russia Slowdown

By CYNTHIA MARTENS and PETE BORN

BOLOGNA, Italy — A depressed domestic market is not the only headache tormenting the Italian beauty industry. A cold chill of concern about the stability of business with Russia generated a current running be- neath the usual discussions at the recent Cosmoprof Crocodile Rock trade show here. Lacoste, a quintessential preppy brand, is testing out its edge with Live, the “There’s a situation of uncertainty; there is a fear house’s newest fragrance. Meant for creative, urban men, the scent begins rolling that after Western sanctions there could be sanctions on the Russian side,” said Duccio Campagnoli, presi- out next week in the U.K., with other global markets to follow through November. dent of BolognaFiere and Cosmoprof, which ran from Industry sources estimate that it could do $160 million to $175 million globally April 4 to 7. in its fi rst year on counter. For more, see page 6. “We were in Moscow for a fair when the Ukrainian crisis emerged, and we noticed that there was a feel- ing of not only uncertainty but also worry on the be- half of buyers regarding their work,” he said. Russia is the sixth-largest export market for Italian beauty manufacturers, and sales of Italian products there rose 5 percent last year. While Russian tourists are a great source of revenue for local mer- chants, Augusto Mazzolari, the most famous of Milanese perfumery owners, said his sales had been growing early this year and then hit a bump. “Lately, ever since America went up against Russia, we’ve lost some of our Russian clients,” he said. “We had a sales increase in January and in February and a drop in March. Russians spend a lot.” Ferragamo Parfums president Luciano Bertinelli PHOTO BY GEORGE CHINSEE; STYLED BY SHARON BER said the decrease in the number of Russians traveling SEE PAGE 8 2 WWD FRIDAY, APRIL 18, 2014 WWD.COM Net-a-porter Eyeing Activewear THE BRIEFING BOX T by Alexander Wang and The Elder Statesman. IN TODAY’S WWD By MILES SOCHA According to sources, its new slate of brands in- cludes some exclusives to build traffic and buzz. PARIS — Signaling the strength of the active trend Net-a-porter’s volley into the active universe is in fashion, one of the industry’s biggest online play- only the latest indicator of a buoyant sector poised ers is about to flex its muscles in the arena. for strong growth. Solange Knowles DJed According to market sources, Net-a-porter will Tory Burch is to unveil her new activewear line at the Jimmy Choo later this year unveil a new department grouping next year, launching it in her Elizabeth Street loca- Beverly Hills party. For together several dozen brands that cater to devo- tion in Manhattan and online, with an initial focus on more, see page 10 tees of yoga, spin classes and running — or for apparel and accessories for yoga, running, golf and and WWD.com. women simply smitten with the sporty look and tennis, plus casualwear for air travel and city life. shopping for great sweatpants and racer-back tops. “I find a lot of women wear what they wear to go It is understood the active department won’t be to the gym all day long,” she told WWD last month. a stand-alone entity, but rather embedded in the In 2013, activewear apparel sales in the U.S. main site, telegraphing that today’s customer mixes gained 9 percent, while total apparel was up just designer duds with more casual fare. 1 percent, according to data from The NPD Group. “Net-a-sporter” is among names executives are Today’s sporty uniform increasingly doubles said to be mulling for the project. as leisure apparel, prompting an array of players Reached on Thursday, a Net-a-Porter spokes- to capitalize on a hot fashion and lifestyle trend.

woman declined to comment. Specialist fitness brands such as Under Armour and AMY GRAVES Launched in 2000 by former editor Natalie SoulCycle are expanding their product offerings, Massenet and owned since 2010 by luxury con- while luxury brands such as Chanel and Dior have PHOTO BY glomerate Compagnie Financière Richemont, recently branched out into sneakers and the like. Net-a-porter specializes in designer collections, Adidas, meanwhile, is ramping up its collabora- selling cocktail dresses, coats, handbags and high tions with fashion figures, revealing earlier this week heels from brands such as Valentino, Alexander that London-based designer Mary Katrantzou would There has been no resolution in China between one of the McQueen, Isabel Marant, Chloé and Marc Jacobs. collaborate with Adidas Originals on a long-term world’s largest shoe manufacturers and tens of thousands of PAGE 1 The e-tailer already stocks a sprinkling of hood- partnership that will consist of a women’s-focused workers who are on strike over a benefit dispute. ies, track pants, leggings and sports bras from la- apparel and footwear line. Pharrell Williams is also bels including Adidas by Stella McCartney, Spanx, doing a capsule collection for Adidas Originals. A depressed Italian beauty market and concern about the stability of business with Russia sparked discussion at the recent Cosmoprof trade show in Bologna, Italy. PAGE 1

Tisch Investment Boosts Sears Shares Currency headwinds and substantial investments, including the acquisition of Marni, dented profitability at fashion group SHARES OF Sears Holdings million this week to buy 475,000 prices as short sellers look to un- OTB SpA in 2013. PAGE 4 Corp. shot ahead 14.1 percent to Sears shares, according to a filing wind their bets. $38.33 in trading on Wall Street with the Securities and Exchange The overall retail scene was It looks like 2014 is turning into the year of the technology- Thursday. Commission. All told, he owns 2.1 comparatively sleepy. related IPO on Wall Street. PAGE 5 Investors appeared to have million shares of the company. The S&P 500 Retailing been heartened by signs of sup- About 58 percent of the Sears Industry Group inched up 0.1 Lacoste is going after the edgy, creative urban set with its port from Thomas Tisch, who is shares that float on the open percent to 867.54 as the Dow latest men’s scent, Live. PAGE 6 a Sears board member and man- market are sold short and pay Jones Industrial Average slipped

aging partner of investment firm off when the stock falls. That can 0.1 percent to 16,408.54. Chantal Roos Four Partners. Tisch spent $15.9 lead to dramatic swings in share — EVAN CLARK , France’s first lady of fragrance, has created a new range of five scents called Dear Rose. PAGE 6

Julien Farel’s new flagship in the freshly redesigned Loews Regency Hotel on Park Avenue is open for business. PAGE 7 Mulberry Re-strategizes for Growth welcomed the news of extending the product range The Tribeca Film Festival opened Wednesday night at the By SAMANTHA CONTI to encompass more entry-priced items. Beacon Theatre with a tribute to Nas. PAGE 10 “My only concern is that, two years ago, Michael LONDON — The new fiscal year won’t be an easy Kors was not as big a competitor as it is today,” said The momentum continues to build for Born Free, the project that one for Mulberry, as the company lowers prices and Norris. “But Mulberry’s offer is of a slightly higher seeks to end mother-to-child HIV transmission in Africa. PAGE 11 slows its international retail rollout with the aim of quality, and more than 50 percent of the bags are getting back into shape. made in the U.K.” The Hollywood Reporter and Fortune feted their own “Most On Thursday, Mulberry said in a trading update Norris is estimating that in the current fiscal Powerful” lists in Manhattan Wednesday night. PAGE 11 that pretax profits for the year ended March 31 would year the new strategy will drag pretax profits down be slightly below expectations, while new strategies by 40 percent to 11 million pounds, or $18.4 mil- Showing its willingness to be transparent and share aimed at getting the company back on its growth track lion, and reduce gross margins to 60 percent from progress, the Alliance for Bangladesh Worker Safety held a would further hurt profits in the current 2014-15 year. Barclays’ projected 63 percent. press briefing in Dhaka Thursday. PAGE 12 Godfrey Davis, Mulberry’s interim executive Both Norris and Solca said they welcomed the chairman, said that following the departure of the slower pace of international store openings in the brand’s chief executive officer Bruno Guillon last current year. Five stores will open in 2014-15, com- ON WWD.COM month, the company is now focused on sales growth pared with eight in the previous year. “from a product offering at more affordable prices Solca said he expects the company will likely re- EYE: Jimmy Choo held a glamorous fete to celebrate the to meet the expectations of our loyal customers.” think store locations and, potentially, store sizes, too. reopening of its Rodeo Drive boutique in Beverly Hills. He admitted the strategies would have “short-term “It would be a good idea to push on the retail For more, see WWD.com. financial consequences,” but said they were neces- front once the product and the pricing are out of sary to ensure the future strength of the Mulberry the woods and more clearly defined,” he added. brand. “The group remains profitable and cash gener- Norris said the brand needed to consolidate its ative, giving us the resources to invest for the future.” core U.K. market, which she called its “cash cow.” FOLLOW US ON SOCIAL MEDIA Davis told WWD that new product will be landing Meanwhile, in the year ended March 31, turn- @ WWD.com/social in June with price tags that are 15 to 20 percent lower over is set to be “broadly in line with expectations,” than previous seasons. “We want to give our loyal Mulberry said Thursday. It added that profits before TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’S NAME. British customer a fair, attractive deal, a collection tax on an underlying basis are expected to be “mar- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. they can really sink their teeth into,” he said. Entry ginally below” current expectations, at about 14 mil- COPYRIGHT ©2014 FAIRCHILD FASHION MEDIA. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. prices for a handbag will be about 500 pounds, or $838. lion pounds, or $23 million. VOLUME 207, NO. 79. FRIDAY, APRIL 18, 2014. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and Analysts welcomed the move, but acknowledged The expected dip in 2014-15 profits comes in part two additional issues in February and September) by Fairchild Fashion Media, which is a division of Advance Magazine that the next 12 months would be a challenge. from a decision to write down the net carrying value Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: S.I. Newhouse, Jr., Chairman; Charles H. Townsend, Chief Executive Officer; Robert A. Sauerberg Jr., President; John W. Bellando, “At last, Mulberry is heading in the right direc- of two U.S. stores — a Mall at Short Hills, in N.J., unit Chief Operating Officer & Chief Financial Officer; Jill Bright, Chief Administrative Officer. Periodicals postage paid at New York, tion,” said Luca Solca, managing director and sector and the Spring Street store in New York — creating a NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to P. O . Box 503, RPO West head of global luxury goods at Exane BNP Paribas in non-cash charge of 2.7 million pounds, or $4.4 million. Beaver Cre, Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P. O . Box 6356, London. “I think Mulberry could play an important Davis said the smaller outlet has been under- Harlan, IA 51593. FOR SUBSCRIPTION, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P. O . Box 6356, Harlan, IA 51593, call 866-401-7801, or email customer service at wwdPrint@cdsfulfillment.com. role in the accessible handbags market. I was con- performing, and the plan is to relocate the Spring Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address vinced that its past attempt to achieve a high-end po- Street store when the lease runs out. The company changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. sition was overambitious and lacking in credibility.” said the costs of the recent management change If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with Mulberry’s growth was at full throttle until two would also dent pretax profits in the 2013-14 year. your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be years ago when the company brought in new man- It has not been an easy 24 months for Mulberry: mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax the request agement, raised its prices in a bid to compete with Guillon stepped down, his tenure marred by multi- to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. For reuse the big luxury players and embarked on an ambi- ple profit warnings, the most recent of which was in permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. To subscribe to other Fairchild Fashion Media magazines on the World Wide Web, visit www.wwd.com/subscriptions. tious international rollout and marketing strategy. January. Creative director Emma Hill resigned last Occasionally we make our subscriber list available to carefully screened companies that offer products and services that we It ended up driving away its core British custom- summer, and Davis said Thursday that he is cur- believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P. O . Box 6356, Harlan, IA 51593 or call 866-401-7801. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS O F, OR FOR er base, at a time when it had not yet made a name rently “very focused” on finding her replacement. DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED for itself among international consumers. Mulberry shares, which are listed on the London TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, Helen Norris of Barclays said it makes sense for Stock Exchange, slumped by about 65 percent on an UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND Mulberry to reengage with its U.K. customer, and adjusted basis during Guillon’s two-year tenure. OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. METAMORPHOSIS

MAY 7-9 • PALM BEACH, FL

SHELLEY ROZENWALD FRÉDÉRIC ROZÉ DEB HENRETTA MICHELE SCANNAVINI AMNON RODAN LAURE HERIARD DUBREUIL HUDSON’S BAY L’ORÉAL SA PROCTER & COTY INC. RODAN + FIELDS THE WEBSTER MIAMI COMPANY GAMBLE

wwd.com/beautyceo TO ATTEND: [email protected], 212.630.4212 TO SPONSOR: [email protected], 212.630.4824

SPONSORED BY: 4 WWD FRIDAY, APRIL 18, 2014 Currency, Investments Hit OTB Net Gant Names Nilsson

Diesel accounted for 70 percent of revenues, but Stilli Chief Executive Officer By LUISA ZARGANI underscored that the other brands in the stable are “in- creasingly gaining shares.” He also noted that Diesel MILAN — Currency headwinds and substantial invest- is off to a good start with new artistic director Nicola By PAULINA SZMYDKE ments, including the acquisition of Marni, dented prof- Formichetti, who unveiled his first collection for the

itability at fashion group OTB SpA in 2013, although brand in Venice earlier this month. “The signs are very PARIS — Gant AB, the American sportswear revenues were in line with the previous year and the encouraging. Diesel needed a new life, and you can feel brand with headquarters in Stockholm, has foundation was set for further expansion. the new energy,” said Stilli. named Patrik Nilsson chief executive officer. In his first interview since joining the company in The executive was pleased with the group’s perfor- Nilsson joins the company from Adidas, September as co-chief executive officer, Riccardo Stilli mance in 2013, given the context, and underscored how where he worked for 23 years, most recently as expressed confidence in the growth potential of the OTB has no debt and can count on a cash pile of around president of the German activewear firm’s North group, parent to brands Diesel, Viktor & Rolf and Maison’’ 70 million euros, or $92.4 million, despite the invest- American division. Martin Margiela, as well as Marni. OTB also controls man- ments made last year. At Gant, he reports to José Luis Duran, chair- ufacturing arm Staff International, which produces col- Stilli revealed that OTB paid “more than 100 million man of the board. Duran has been acting as in- lections for Just Cavalli, Vivienne Westwood, Marc Jacobs euros,” or $132 million, for Marni. Other investments terim ceo following the departure of Dirk-Jan Men’s and Dsquared2. Stilli shares the role of co-ceo with were channeled into the group’s retail chain, including Stoppelenburg in December. Stefano Rosso, son of OTB founder Renzo Rosso. the opening of the first Viktor & Rolf freestanding store “Gant is today one of the world’s leading “We have quite a few aces up our sleeve and great op- in Paris and “an impressive” Just Cavalli boutique in American sportswear brands, and I’m very excited portunities. We are still not heavily present in Asia; our New York. Also, last year OTB spent between 5.5 and 6 to welcome Patrik Nilsson as the new ceo,” said markets are well-balanced, so that if there are problems percent of sales on marketing and communication. Duran. “With his extensive international experi- in certain areas, we can shift our focus. We have a huge Stilli several times referred to the “strength” of the ence and strong knowledge in building and refining potential in the accessories and footwear category, which OTB group, one of the few fashion conglomerates in leading iconic brands, he will bring important ex- has not really been tapped yet,” Italy, and to the “engine” behind pertise in sales, marketing and product knowledge.” said Stilli, who also highlighted the it — Renzo Rosso. “Last year was Meanwhile, at Adidas, new executive roles group’s strong organization, exper- one of consolidation and increased have been quickly assigned. tise and synergies. We have quite a few focus, and steps taken in 2013 will Succeeding Nilsson is Mark King, due to take That said, he conceded he was continue and be effective through- up his new post on June 1. King, who started “reasonably concerned” about the aces up our sleeve and out 2014,” said Stilli, praising the his career as a sales representative, has helped global environment given the in- group’s integrated structure and double the sales of TaylorMade-Adidas Golf stabilities and tensions around the know-how he found when he joined since he became the division’s ceo in 2003. In world, the strong euro and other great opportunities. OTB last year, one he can further his new role, he will be in charge of all Adidas currency fluctuations, as well as capitalize on to expand. and Reebok operations in North America a slowdown in Chinese consumer — RICCARDO STILLI, OTB SPA Stilli spent six years as chief and report to Roland Auschel, member of the spending that simply “can’t grow financial officer and managing di- group’s executive board, who is also responsible as in the past.” rector of Prada Group, until 2005. for global sales. Asked if the group was tweaking its prices to adjust More recently, he was cfo and then general director of In turn, Ben Sharpe, who is executive vice to the currency headwinds, Stilli responded in the nega- Italy’s RCS Media Group, which owns newspapers in- president of Adidas Golf and Ashworth, will take tive. “A price hike is not an answer; we evaluate each cluding Corriere della Sera and La Gazzetta dello Sport. over from King as the new ceo of TaylorMade- situation, but nobody in our industry would be so brash The executive played an important role in Prada’s first Adidas Golf, reporting directly to the group’s ceo to do so,” he contended. Stilli also noted that Japan and attempts at a stock market listing, before it eventually Herbert Hainer. the U.S. are the group’s main markets, accounting for 20 went public in Hong Kong in 2011. Over the years, Rosso Sharpe, an acclaimed athlete who represented percent and more than 15 percent of sales, respectively. has repeatedly said he is not looking at an initial public Great Britain at the Sydney 2000 Olympic Games “Just look at what happened to the yen and the dollar. offering, and Stilli, addressing his arrival at OTB, re- as a member of the country’s field hockey team, This surely does not help to boost results,” he said, add- marked’’ with a laugh, “I was not tapped for the bourse; spent six years as the division’s managing direc- ing that prospects in the U.S. are positive. the possibility has never been discussed and we are not tor in Europe, where he is credited with having In 2013, OTB’s earnings before interest, taxes, de- thinking about it.” doubled the brand’s business. preciation and amortization totaled 140 million euros, When Rosso took control of Marni, he said he was “Mark King’s appointment underlines our or $148.8 million, down from 200 million euros, or $256 looking at building a fashion conglomerate, admitting clear commitment to the North American market- million, in 2012. “Almost half of this drop is due to the to having made a go for Valentino, which was eventually place,” said Hainer on Thursday. “[He] has a prov- currency headwinds and to the investments made,” said sold to Mayhoola for Investments. Asked about further en track record of success and leadership excel- Stilli. Dollar amounts are converted at average exchange potential acquisitions, Stilli said, “Our strength is that we lence. In turn, TaylorMade-Adidas Golf is in the for the periods to which they refer. are an industrial group that includes brands from con- best hands with Ben Sharpe, who has been part of Revenues totaled 1.57 billion euros, or $2.07 billion, temporary to luxury. We continue to look at the market, the successful TaylorMade leadership team since inching up from 1.50 billion euros, or $1.92 billion, in 2012. but we don’t have any target today. If opportunities arise, 2006. I am convinced that Ben will lead our golf At constant exchange, sales would have risen 2 percent. why not?” business into the next era of growth.”

Fall 2014: MM6 Opens Second New York Outpost JOHN AQUINO Ann Taylor By SHARON EDELSON

PHOTO BY Ann Taylor: An understated MM6 MAISON MARTIN Margiela has opened a wardrobe of modern 1,400-square-foot store for its casual, New York- staples in clean lines inspired collection, at 91 Grand Street in SoHo. and a neutral palette It is the second MM6 unit in Manhattan. A sig- of black, navy and gray nificantly smaller unit — about 500 square feet — was creative director opened on Bleecker Street in the West Village in Lisa Axelson’s proposal 2012. The Bleecker Street store was the first free- for fall. This year marks standing MM6 shop. Ann Taylor’s 60th The company felt that the Bleecker Street cus- JOHN AQUINO anniversary, but instead tomer is different from the SoHo residents and Inside MM6 on Grand Steet.

of reflecting on the past, tourists it hopes to attract at the Grand Street PHOTO BY the company is focusing address. “Consumers and tourists tend to stay in on moving forward. a radius for several blocks,” the company said. shirts are $255 to $595; dresses, $255 to $570; jack- “We’re trying so “There’s opportunity to show the brand to a whole ets, $625 to $1,095; shoes, $295 to $890, and hand- hard to modernize and new demographic.” bags, $195 to $895. Maison Martin Margiela jackets bring a youthful energy The brand’s roots include French DNA, are $1,795, handbags, $2,360, and boots, $1,095. to the brand,” said but it’s New York-bred, “a culture that is also The store has light gray walls that are inter- Axelson, who considered unmistakably New York,” the company said. rupted by white grids. Some of the grids are filled what working women Given that positioning, “opening other stores in with tiles and others are left bare. It’s part of the wear today. She gave a Manhattan is not out of the question. We’re now deliberately unfinished concept for the store. strong depth to classic focusing on downtown.” Clothing will hang in cubbies within the grids. silhouettes — sweaters, The company is also occupied with MM6’s There are also shelves for accessories and two crisp shirts, pleated opening this week in London. An MM6 store was types of flooring, a light wood parquet and a white FOR MORE IMAGES, SEE skirts and spare jackets unveiled in Paris late last year. concrete “carpet” that is a tromp l’oeil. Lighting WWD.com/ — through texture, MM6 was created in 1997 as a casual brand stems from LED poles spring from the floor and fashion-news. working with leather, with contemporary cuts and prints aimed at a cus- are linked together by white plastic cable for an tweed, pony hair and tomer younger than that of the Martin Margiela “under construction” look. chunky knits. “It’s not collection. Unique fabric treatments create ev- The back of the store is completely mirrored about in this season, out eryday clothes with a utilitarian and functional with a skylight above. tomorrow,” said Axelson. approach. The collection also emphasizes soft The Margiela brand has been controlled by Italy’s “That’s so important for volume and draping. Only the Brave group under its Staff International our customer — she’s not The line is shown during New York Fashion Week. division since 2002. The brand’s founding designer that frivolous.” MM6 is priced up to 50 percent less than the exited his namesake house in 2009 and it is now de- Martin Margiela collection. For example, women’s signed by an in-house design team. WWD FRIDAY, APRIL 18, 2014 5 WWD.COM

Tech IPOs Proliferate on Wall Street feel of a bubble, what’s tempering it a lit- said the technology sector picked up in getting into the paid advertising revenue

By VICKI M. YOUNG tle is that start-ups in order to get Series March as investors embraced companies model, a move that could impact whether A and B fund-raising rounds now have to offering cloud and enterprise software. an IPO is even a possibility down the road. LOOKS LIKE 2014 is turning into the be more mature before they go public,” Renaissance also concluded that with 103 Tech IPOs last year included digital year of the tech IPO in the U.S. compared with the technology boom and new filings in the quarter, the “rest of 2014 coupon firm RetailMeNot, raising $191 The public markets window is still bust of 1999 and 2000. is on track to keep up this record pace.” million in July; children’s merchandise open so far, and following the initial pub- In addition, what may keep tech IPOs The latest in the fashion space to go e-commerce site Zulily, raising $253 mil- lic offerings completed last year, such as at the forefront is the trend this year of a public on March’’ 21 was Borderfree, a lion in November, and social media site Zulily and Twitter, expect more technolo- number of Chinese firms listing outside logistics service that facilitates cross- Twitter, raising $1.82 billion in November. gy-related IPOs throughout 2014. their home country. The Asia-Pacific re- border e-commerce activity between U.S. The Twitter raise was intriguing, given In the area of fashion and apparel, gion last year was impacted by a shutdown retailers and international shoppers in that — according to its shelf registration don’t expect these soon-to-be-newly list- of China’s A-share IPO market as the coun- more than 100 countries and territories. last year — while revenues jumped nearly ed firms to be pure tech plays, such as a try put a hold on equity offerings to redo Other e-commerce plays from non- threefold in 2012 to $316.9 million, the com- Microsoft or Cisco of years past. Think the regulatory framework for stock market Chinese firms that could go public this pany has yet to figure out the profit side of more e-commerce and Web plays, such as listings. That ban was recently lifted, but year include Gilt Groupe and the much- its business. It logged adjusted earnings be- Alibaba and Gilt Groupe. the regulatory structure — in terms of re- speculated Etsy. In addition to Gilt and fore interest, taxes, depreciation and amor- To be sure, some recent IPOs have quirements — is considered more stringent Etsy, research firm CB Insights had tization of $21.2 million for 2012. priced shares lower than expected, than the U.S. For example, China limits the Warby Parker on its list of potential tech While subscribing investors received such as Sino Corp.’s Weibo Corp., which daily gains and losses on stock prices. IPOs for this year. There are 590 technol- the benefit of the offer price of $26 a priced Wednesday night at $17 a share, Financial sources said many of China’s share, anyone who bought — and held — giving the firm a valuation of $3.46 bil- regulatory rules are pushing Chinese on the first day of trading when it opened lion. It began Nasdaq trading Thursday firms to consider listing in the U.S. at $45.10 on Nov. 7, or when it hit a high of under the symbol “WB.” Another Chinese firm that priced re- The cash sitting on $50.09 in intraday trading, ended up losing Weibo disclosed in a regulatory filing cently in the U.S. is Jumei International money at the day’s close at $44.90. Shares that its 20-million-share offering is likely Holding Ltd., which said it plans to raise the sidelines is huge, of Twitter are in the trading range of $41. to be priced between $17 and $19 each, around $400 million in an IPO. Freschman expects technology IPOs to raising $380 million and valuing the group Jumei.com is a Beijing-based e-com- and it needs to be continue at a fever pace this year. at $3.9 billion, at the top range of its pric- merce cosmetics firm that also operates “The cash sitting on the sidelines is ing guidance. Instead, the micro-blogging a flash-sale site. The filing didn’t state huge, and it needs to be deployed in some site in China that’s comparable to Twitter when it plans to go public — although deployed in some type of investment. You can’t leave it in in the U.S. sold 16.8 million American de- some in the investment community be- the bank earning a quarter of a point.… positary shares at the low end of its range lieve it is likely in the second half of this type of investment. Technology has become more capital- and raised $285.6 million. Shares of Weibo year — or on which exchange it plans efficient, and the venture capital firms opened at $16.27 and gained ground, ris- to list. Jumei is backed by venture capi- You can’t leave it in focused heavily on technology and enter- ing 19.1 percent to close at $20.25 in its tal firm Sequoia Capital. The company, prise software have to exit now so they’re first day of trading Thursday. which said in the filing it posted $8.1 mil- pushing the IPOs out. The valuations are Cloud-based human resources and lion in profits in 2012, more than tripled the bank earning a going up, even if you wonder how, in some payroll firm Paycom.com didn’t fare that to $25 million in 2013. The filing also cases, a company of 30 people is worth $19 as well. On Tuesday, shares of Paycom said it had 10.5 million active customers. quarter of a point. billion,” the venture capitalist said. priced at $15 a share, lower than the ex- Next up could be the Alibaba Group, In the same CB Insights report, the pected range of $18 to $20 a share. In its China’s Internet giant, which has said it —DAVID FRESCHMAN, question was raised whether valuations first day of trading Wednesday, shares of plans to list in New York. The company, EARLY STAGE EAST AND in the tech IPO sector are hitting bubble Paycom opened at $17.90, but then drift- which owns a stake in Weibo, is expected territory, noting that “[w]ith massive fi- ed lower to close at $15.62. to list later this year, and speculation is that FASHINVEST nancing and secondary market rounds Last month the entertainment mo- the online firm could raise as much as $15 becoming more frequent, so have billion- bile app Candy Crush went public, only billion in an IPO that would value the com- ogy firms on CB’s list, all of which are dollar-plus valuations. The number of to see its stock price fall nearly 16 per- pany at more than $100 billion. The compa- backed by either venture capital or pri- tech IPO pipeline companies that raised cent below its IPO pricing on the first ny could file its shelf registration next week. vate equity financing. financing with a real or rumored valua- day of trading. That could suggest either Also planning to go public in the U.S., Tech firms that are considered possible tion of $1 billion-plus in 2013 jumped 67 a possible caution in the tech IPO mar- possibly by July, is JD.com Inc., a Chinese candidates for IPOs tend to be ones that percent versus 2012.” Among those on its ket or something more specific to gaming e-commerce site that’s considered sec- make certain changes to their management list having real or rumored valuations of IPOs. Social gaming firm Zynga, which ond to Alibaba. The company filed a shelf team, such as an experie’’nced chief finan- $1 billion or more include online sports was valued in its December 2011 IPO at registration in January in which it said cial officer; are getting close to or have retailer Fanatics, Gilt, Pinterest and $7 billion, saw shares climbing as high it hoped to raise $1.5 billion. Asia’s larg- surpassed $100 million in annual volume, global youth digital media firm Vice. as $11.50 in its first day of trading. The est Internet firm Tencent Holdings Ltd., or have been able to raise a significant According to Freschman, the values shares currently trade around $4.50 each. which operates the WeChat message ser- amount in their latest fund-raising round. being assessed by the venture capital in- Much of the decline in the equity mar- vice, has a 15 percent stake in JD.com. Warby Parker in December raised $60 dustry are not always reflective of what kets lately has centered on biotechnology According to a report from IPO invest- million in a Series C round of financing; institutional investors might think ap- and tech firms, leaving some to question ment advisory firm Renaissance Capital, Etsy in February 2013 brought in Fidelity propriate for a company. “What happens whether there’s been a bubble in the the U.S. IPO market in the first quarter veteran Kristina Salen as cfo, and Gilt is is that some companies go public and tech sector. showed more activity than in any other said to have hired Goldman Sachs to work accelerate in value and others will see David Freschman, founder and chief first quarter since 2000. That’s based on on an IPO for later this year. Pinterest, values reduced so they’re more aligned executive officer of both early-stage ven- 64 firms raising $10.6 billion, or more than which raised $225 million in Series E with traditional metrics based on cash ture capital firm Early Stage East and double the number of IPOs in the same funding in October that gave it a company flow and future dividend earnings flow. fashion networking group FashInvest, year-ago quarter. While health-care firms valuation of $3.8 billion, doesn’t currently At some point you’ve got to value a com- said while the current market “has the dominated the quarter, the advisory firm have any revenues. Pinterest is, however, pany based on earnings,” he said.

the school’s advisory board, said the evening “will highlight our Vitale, Kalenderian to Be Honored shared credo of inspiring and supporting the future members THE HIGH School of Fashion hire disadvantaged young people of our industry. We can’t think of Industries has selected Barneys Daniella to work at Barneys New York. two more deserving individuals New York’s Tom Kalenderian Vitale The High School of Fashion and look forward to celebrat- and Daniella Vitale as the hon- Industries has a long history ing them and showcasing our orees for its 28th-annual Student with Barneys New York as it was students’ talents at the annual Style Celebration on May 14. one of the original benefactors of Student Style fashion show.” Vitale, the retailer’s senior our Youth Program.” The event, which will be held executive vice president and Fred Pressman was the son at the school at 225 West 24th chief operating officer, and of Barneys founder Barney Street, will include a fashion Kalenderian, its executive vice Pressman and was viewed as show featuring student designs. president and general mer- one the most legendary mer- It will be held in the school’s au- chandise manager of men’s and chants in the apparel business. ditorium, which has landmark Chelsea Passage, will be pre- Calling it “a great institu- status because of its murals, sented with the school’s Fashion tion,” Vitale said, “I have always painted by Ernest Fiene between Visionary Award. They were admired young adults who are 1939 and 1940. A cocktail recep- singled out for their commu- passionate and committed to tion will be held prior to the nity leadership, commitment to something so early in their lives. show in the school lobby, which nurturing talent and the store’s Tom Kalenderian I was very much the same way will be decorated by the students. planned return to its original lo- and am a strong advocate for The High School of Fashion cation in Chelsea, the school said. will come from Naples to pres- est in the fashion industry. It is schools who mentor and edu- Industries was founded in 1926, Paulette Garafalo, president ent the award to Kalenderian. especially meaningful to me hav- cate in this way. I look forward and its 1,750 students can major of Brooks Brothers, will pres- Kalenderian called it “a great ing personally been mentored by to celebrating the accomplish- in fashion design, fashion mer- ent the award to Vitale, and honor to be recognized by a high the legendary Fred Pressman, ments of the students at the chandising, visual merchandis- Gianluca Isaia, president and school that inspires and mentors who developed a summer pro- High School of Fashion.” ing, illustration or graphics. chief executive officer of Isaia, young people who have an inter- gram in the mid-Seventies to Adrian Gilbey, president of — JEAN E. PALMIERI 6 WWD FRIDAY, APRIL 18, 2014 Lacoste Gets Edgy With Live beauty and guaiac wood and licorice By JENNIFER WEIL notes in the base. “Licorice is what makes this PARIS — Lacoste is going after special twist,” said Delgrange. the edgy, creative urban set with The Live concept, he ex- Roos and Roos: A New Step its latest men’s scent, Live. plained, is about being alive and “We call [it] a new pillar,” full of energy. said Antoine Delgrange, global “The overall idea is to live with who inspired Roos to take the marketing director at Procter & a different angle,” said Delgrange. By JULIE NAUGHTON leap, said Roos. Alexandra and Gamble Prestige, Lacoste’s fra- As such, the brief for the cam- “Alexandra is an artist — she Chantal Roos grance licensee. paign — directed by H5 and co- FRANCE’S first lady of fra- has launched four records and The global introduction capital- ordinated by Grey Advertising — grance is back — and this time, writes music — and she asked izes on the success of the L.12.12 was to “break the category codes she’s doing it her way. me why I’d never considered collection for men, which made its and play with this perspective, Chantal Roos, the power- launching my own fragrance,” debut in 2011 and gleaned inspi- this optical illusion,” he added. house behind such legendary said Roos. “In the process of ration from Lacoste’s iconic polo Starring in the 20-second juices as YSL’s Opium and helping me start development, shirt, he said. video destined for TV is the Issey Miyake’s L’Eau d’Issey, she also fell in love with the pro- The idea was “also to build French graffiti artist known as

has teamed with her daughter, cess. To transmit something of on the positive momentum of Zoer and another man, who Alexandra, to create a quintet your savoir faire to the next gen- the Live fashion business,” color, paint and tape the walls of scents aimed at high-end eration — it is a wonderful feel- Delgrange continued, referring of a white loft space. Once done, consumers. Rather than cater- ing. It is as if we had always been to the Lacoste subbrand that the camera takes a new vantage ing to a designer’s demands, doing it together. And even when was launched in 2010 to target point, revealing that their work however, this time Roos is cre- I am a very old woman, I will a younger, more contemporary has morphed to make a 3-D Live

ating the DNA for Dear Rose, have a place to go to be useful.” customer than its core sports- bottle. The ad’s tag line is: “New wear collection. fragrance. New perspective.” Live’s print advertis- and centifolia rose, cinnamon, ing, shot by Grey, comes in tonka bean and sandalwood. single and double pages. Bloody Rose, which combines A large focus of the ’’ ylang-ylang, orange flower, in- scent’s campaign is to cense and patchouli, addresses be on digital, includ- the choice to love. Sympathy for ing an Instagram pres- the Sun, an ode to love on the ence, where people’s beach, combines jasmine petal, own content playing peony and salt. La Favorite, a with perspective can be combination of pink pepper, saf- posted with the hashtag fron, oud wood and patchouli, is #newperspective. intended to capture the heady “The whole idea will essences of evening, noted Roos. then be to reward the best The scents were concoct- piece of art with some Items from the Dear Rose lineup. ed with Firmenich’s Fabrice prizes,” said Delgrange. Pellegrin, Roos added. The Live optical il- Each scent will sell for 125 lusion theme will be euros, or $173 at current exchange, brought in-store, too, With Dear Rose, I am creating for a 100-ml. eau de parfum. with cubic effects. The collection will begin P&G executives rolling out in May to select would not discuss pro- my story and my daughter’s. niche perfumeries in France, jections, but industry — CHANTAL ROOS Germany, Austria and Australia, sources estimate Live and Roos is currently eyeing The Live ad. will generate between U.S. distribution, which could $160 million and $175 her new range of scents. Roos was determined to cre- include independent perfum- “We worked from the start very million in first-year retail “In my roles creating fra- ate an offering that was com- eries and high-end specialty closely with the fashion house,” sales worldwide. grances for YSL, Issey Miyake pletely different from what is cur- stores. She is currently work- said Delgrange. “The whole idea The scent will first be intro- and Jean Paul Gaultier, I al- rently on the market — including ing with a distribution agent, is to play with perspective.” duced in the U.K. during the ways worked within an estab- nontraditional names and ingre- Different Latitude, which rep- The Live bottle takes the last week of April, followed by lished DNA — sexiness, trans- dient combinations. “There is resents brands in that niche dis- shape of a cube and sports the the Middle East, Africa, the parence, whatever, etc. — and no point in doing the same thing tribution. “We will grow slowly, colors blue, white, red and black, Nordic zone and Spain in May; my job was to take that DNA using the same bottle and a lack as our company is just the two even listing them as ingredients France and Portugal in June; and transform it into a fra- of creativity and emotion,” she of us right now,” said Roos. “We (think “32 percent intense blue” greater Europe in July; North grance,” said Roos. “This is the said. “That is the lack of a good also want to look for the right and “10 percent pure red,” for in- America, South Africa and first time I have started com- reason to launch’’ something.” distribution opportunities.” stance). Here, the Lacoste croco- Russia in August; Latin America pletely from scratch. With Dear A Capella combines notes of While Roos declined com- dile logo takes a whitish hue. in September, and the Asia- Rose, I am creating my story rosebud absolute, ivy leaf and lu- ment on projected sales, indus- P&G’s fragrance design Pacific region in November. and my daughter’s. The dear is minous white woods, which cap- try sources estimated that the team and Lacoste jointly cre- The eau de toilette spray is to for the emotion, and rose is a ture the morning sun, said Roos. fragrances could do roughly $3 ated the juice. There’s a lime come in 100-ml. and 40-ml. ver- mythical flower in fragrance.” I Love My Man addresses the joy million in retail sales in their note in its top, green leaves sions, which will retail in the In fact, it was her daughter of love with notes of Bulgarian first year on counter. and aquatic notes in the heart, U.S. for $69 and $42, respectively.

Custom banquettes and Painting a Fresh Picture for Nails tables at Paintbox. LIKE MANY beauty editors past sparkling water, Champagne or and present, Eleanor Langston wine while soaking off gel pol- has always had an appreciation ish or receiving a quick polish for a high-end service experi- change, said Langston, who is ence. And when she couldn’t Paintbox’s chief executive of- find one in the nail arena? She ficer. The 18 manicure stations, decided to create it herself. each with an iPhone charging Langston’s brainchild, dock, are offered for more exten- Paintbox, will open at 17 sive services. To accommodate Paintbox’s Crosby Street between Grand the businesswomen Langston bar area. and Howard Streets on May sees as her customers, she’s also 3. She used her experiences planning to be open until 9 p.m. as a former beauty editor at seven days a week, and appoint- Langston worked with Julie with polish is $35, while a gel ver- custom-built photo box for nails, Cosmopolitan, Self and Fitness ments can be booked online. Kandalec, Paintbox’s creative di- sion is $50. A design manicure is which allows guests to capture magazines — and architectural Langston is also shaking up rector, to curate a nail look book $55 with polish and $65 with a gel, their nails and share via the so- firm RAAD Studio — to create the service experience in an- that offers the Paintbox options: and all designs can be performed cial media options programmed the 1,500-square-foot space. It is other way: The studio will offer 50 colors and 25 quirkily named in one hour or less. Brands used into the machine. designed to look like an elegant- seasonal collections “of thought- nail designs, ranging from Split include Chanel, CND Vinylux, Executives declined com- ly appointed club, complete with fully edited nail designs and col- Personality (tonal design with Deborah Lippmann, Essie, Marc ment on projected sales, but a bar space, custom-designed ta- ors reminiscent of runway and a darker nail tip) to Bermuda Jacobs, Zoya, Gelish and Presto, industry sources estimate that bles and banquettes in shades of editorial trends to discerning Triangle (one of four pastels with which are brought out to custom- Paintbox could generate $1.7 midnight blue and blush with el- women seeking edgy elegance,” a black triangle design at the base ers on a jewelry tray after they’ve million in revenue during its ements of marble, mirrored glass as Langston described it, and of the nail bed). Traditional pol- made their selections. first year. Eventually, she said, and copper. The bar serves as a added that there will be spring- ish and gel manicures are also Langston’s also offering a fun she hopes to expand the concept place to enjoy coffee, espresso, summer and fall-winter options. offered. A traditional manicure digital touch post-manicure — a to additional cities. — J.N. WWD FRIDAY, APRIL 18, 2014 7 WWD.COM 6,000+ CEW MEMBERS HAVE ACCESS TO

JOHN AQUINO EXCLUSIVE

The new Julien Farel space. PHOTOS BY INDUSTRY NEWS A New Home for Julien Farel iterations of blowouts, mini facials, manicures and By EVERY DAY BELISA SILVA pedicures, which can be customized depending on a consumer’s needs. Also offered are a selection of AFTER MONTHS of final touches, Julien Farel’s scalp treatments, priced between $40 and $150, in- new flagship in the freshly redesigned Loews spired by Farel’s hero product, Anti-Aging Haircare Regency Hotel on Park Avenue is open for business. Restore, for which the outpost is also named. More than double the size of his original Madison “We have very strong, simple core brand values Avenue location, the sparkling 10,000 square-foot that I think keep people staying and it is about the beauty, wellness and fitness destination, now called hard work, it is about caring for the client,” said

Julien Farel Restore Salon & Spa, is meant as a one- Suelyn Farel. “There’s just something about what stop shop for New York’s time-deprived power play- Julien does for people.” ers. “It’s luxury beauty paired with efficiency so cli- Of his signature cutting style, Farel said, “the ents can make the most of their time with us,” said way I work is like an architect. Every single stage Farel, whose signature $650 the hair is going to grow [cus- cut is a favorite of regulars like tomers] are always going to get NOW Jonathan Tisch, Rafael Nadal a great look. I believe it’s not and Ivanka Trump. about giving a book to someone According to Farel, who and saying ‘How do you want to YOU CAN TOO! oversaw the venture with his look?’ It’s about creating some- wife and the businesses’ chief thing that is going to fit a per- executive officer, Suelyn Farel, ’’ son’s essence.” SEE WHAT YOU’VE the move is meant to elevate Farel’s French roots brand awareness and upgrade blended with modernity in- the client experience. spired the look of Farel’s BEEN MISSING “It’s one thing in New spacious new home, part of York…if you don’t go up, you the hotel’s $100 million over- go down, so let’s go up,” Farel haul. Imagined by residential told WWD. “I married some- designer Meyer Davis, the one who especially likes to space features floor-to-ceil- go up, so she’s like the back ing windows and a fireplace, hand. I’m the front page.” and is decorated with Maletti Said Suelyn Farel, his wife Italian furniture and David of 10 years: “I’m the opera- LaChapelle photographs. VISIT tional girl. I love the nuts and Farel and his “I think what the people re- bolts. I love putting it togeth- wife, Suelyn. ally find when they walk into er, building the brand.” our salon is a home away from CEW.ORG/BEAUTYINSIDER From classic cut and color home where they are cared to massage and dermatology for,” said Julien Farel. “Why do services, gym access, private It’s one thing in guests come from Jacksonville, VIP rooms, a men’s-only floor Fla., to get their hair cut at 5 NOW for where clients can get their a.m. and go back at midnight? beards trimmed and shoes New York…if you [Because] core is our services, shined (JF Men will open its and taking care of our clients.” doors in May), clients will be don’t go up, you go According to Farel, 2014 FREE ACCESS until treated to a multidisciplinary marks a year when the brand is approach to antiaging. The expanding in other ways as well. two-floor space, which indus- down, so let’s go up. For one, the Julien Farel product try sources estimate cost $7 — JULIEN FAREL collection, made up of 22 stock- MAY 16, 2014 million to complete, features keeping units, is rolling out to 32 cutting stations, as well Sephora Italy and will enter the as VIP rooms where guests can chose from mul- U.K. via Selfridges in May and Switzerland within the tiservices like a $350 Power Pick Me Up (facial, next 12 months. Farel has also launched his first ame- reflexology work and blowout combination) to a nities line, a curated selection of his best sellers, into $1,170 Red Carpet Ready package, which includes the 379 rooms in the Park Avenue Loews location. In a bamboo scrub, massage, eyebrow shaping, facial addition, all 19 Loews hotels and resorts worldwide are peel, mani/pedi, hair styling and makeup applica- now equipped with a Julien Farel-branded hair dryer. tion. Dermatologist Doris Day has signed on as the “Julien is a leader in his field who will play spa’s medical director and will spearhead ongoing an important role in the continued evolution of roundtable sessions to address all facets of one’s Loews Regency Hotel,” said Tisch, chairman of well-being and self-improvement. Loews Hotels & Resorts. “The Salon & Spa will Among the ample hair services on offer are sig- add an unmatched level of sophistication to the nature treatments like Power Highlights, $205, a property while enhancing the offerings we will quick contouring partial color service, the power provide our mutual clientele.” coif, a $65 updo, braid or pony tail and Power Hair, ’’Although brand executives would not break out fi- a $1,000 haircut by Farel meant to improve hair nancials, industry sources estimate the new flagship health without losing length. Power Hour, which salon could generate about $9 million in its first year ranges between $155 and $230, includes various and will be visited by approximately 22,500 guests. 8 WWD FRIDAY, APRIL 18, 2014 beauty Uncertain Times Spur Concern at Cosmoprof

{Continued from page one} As part of its 50th anniversary cel- to Europe and the recent devaluation of ebrations, Vogue Italy also selected a the ruble had caused a noticeable dip pool of local rising young beauty talents in business. — makeup artists and hairstylists — who “We’ve felt it, too, in our Ferragamo recreated five past Vogue cover looks at boutiques — a drop in the number of a cocktail reception held at the historic Russian clients,” he said, noting that the Palazzo Re Enzo in Bologna. problem had rippled across the industry. The injection of fashion, if only for “The fragrance business has also signifi- a night, might not be enough, however. cantly slowed down [in Russia] because Some people like Franchina think that of pricing problems. This is a major issue vein should be mined even further. in the first half of the year.” “In the fashion business, Milan is so The jitters over Russia come against important. Twice a year everyone shows the backdrop of an industry that has a new collection and everyone goes to recently grown dependent on exports Milan, to Paris, to London, to New York to compensate for a suffering domes- to see something really new,” he said. tic business. Italy’s beauty market was “Here should be exactly the same thing down 1.2 percent in 2013 year-over-year, — not in April, but in mid-March, the oc- whereas exports rose 11 percent, accord- casion to show the new spring-summer ing to Cosmetica Italia, the association of collection for any kind of business. So Italian cosmetics companies. everybody needs to come here.” Cosmoprof ’s recent efforts to bring Designer Alberta Ferretti, Bologna mayor Virginio Merola, In that case, for four days Bologna buyers into the fair to meet manufac- Vogue Italy’s Franca Sozzani and Duccio Campagnoli. would be the “capital of beauty,” said turers featured a rare appearance Franchina. “I think that everybody is by a Russian contingent led by Irina ready to do something more like this.” Nazarova, project manager at the Italian- Anastasia Soare, ceo of the Anastasia Russian Chamber of Commerce. eyebrow brand, had another suggestion. She said Italian companies “are “I’d like to see something very selective,” afraid of the sanctions applied toward she said of the show. “But they’re talking Russia” and the situation in the country too much to the public and not focused is unclear. enough on the industry.” Meanwhile, some Russians said it is Although growing, Italy’s beauty busi- business as usual. Olga Lukyanova, brand ness abroad isn’t enormous for domestic manager at Natura Siberica, an organic labels. During Cosmetica Italia’s con- Siberian skin-care label, said there has ference at Cosmoprof on April 3, Gian been “no impact” on business due to the Andrea Positano, director of its research political situation. Hayk Sargsyan, chief facility, said about 34 percent of beauty executive officer of Moscow-based dis- production is exported by brands and that tributor Supercosmetics that is behind ideally it would be half. He added that the Cosmotheca chain, said any possible contract manufacturers export 78 percent. fallout would not be limited to the cos- On the theme of increasing domes- metics sector but be for all business. Fabio A look re-created for the tic beauty revenues, Cosmetica Italia While various Italian exporters and Rossello Vogue Beauty Talents event. will host another conference in June to even Russians downplayed the specter discuss monobrand stores and direct of trouble, others were more vocal in sales, which Positano said “should be describing the strengthening of a roiling perceived as a concrete help to in-store undercurrent. Irina sales” — rather than an impediment. “Everything has been stopped,” said Nazarova There were a number of international Fabio Franchina, president of Framesi. buyers at the show scouting for unusual “The level of consumption dropped 20 and distinctive brands. percent in two weeks — of any kind of Marcia Gaynor, general marketing goods. Even the major players decided manager, Beauty & Look Boutique at to reduce any kind of importation or any Duane Reade, said she was “looking for kind of investment from now on. We can things that are different — things that only wait and hope.” are not everywhere.” There were also market reports that She also expressed an interest in start- La Rinascente, Milan’s dominant depart- up indie brands, but acknowledged the ment store, suffered a sharp drop in sales difficulty of working with fledgling entre- in its luxury and children’s apparel de- preneurs who lack business know-how. partments — areas that draw a large per- “Some of them want you to build their centage of tourists. In contrast, foreigners business for them; if it’s a brand you make up only an estimated 17 percent of truly believe in, you are willing to help,” the store’s beauty department revenues. she said. The uncertainty about Russia and the “ Yo u can do the hand-holding for a cer- Italian economy was echoed by specula- tain amount of time,” said Claudia Lucas, MAESTRI DAVIDE tion about the future tenor of Cosmoprof beauty director at QVC USA, during a Bologna itself. Products from Natura Siberica. panel discussion at the fair. She added

One symbol of change in the fair’s PHOTOS BY that, after a period, brands need to become sprawling collection of buildings was a more independent in order to survive. pavilion dedicated to Korean beauty in- The current state and future of the referring to the industry’s Made in Italy Their survival is key for today’s busi- novation, which has been a topic in the Bologna trade show has been debated for campaign to promote the country’s ex- ness. In the competitive retail land- news. Another rising trend — the surge years. Fueling the conjecture recently ports. However, Rossello added he ex- scape, indie brands are a much-needed of young indie brands — was showcased has been a migration of major market pects the event to return to Cosmoprof point of difference. for a second year by the Extraordinary brands to the Singapore- and Cannes, Bologna every four to five years. In Hong Kong — “the gateway to Gallery. An additional hot-ticket element France-based trade shows. A number of Meanwhile, he definitely wants to China” — there is a rivalry among the was Cosmopack, the packaging trade small fairs showcasing niche fine-fra- bring fine-fragrance and other perfum- numerous department stores for stellar show that ran from April 2 to 5. grance label brands have sprouted up in ery brands back to Bologna. Rossello en- labels, said Anita Yuen, beauty director Campagnoli stressed that Cosmopack was Milan as well. visions creating a “supermarket” space. of Harvey Nichols Hong Kong. upgraded as its own destination this year. In the latest example of the growing “Imagine a big Sephora, where people Cinzia Baldelli, La Rinascente’s “We will be investing a lot in the next trend, the Accademia del Profumo this can try different perfumes,” he said. head of beauty, children’s wear and toys, few years,” he said. “The American mar- year moved its 25th annual award cer- Rossello described changes he would added, “In order to be global, we need to ket is very important in packaging, and emony to Milan after years of hosting it make to the fair by identifying what he have new brands to satisfy the customers so we are thinking of making an ad- in Bologna during Cosmoprof. feels is lacking in the American, Las coming into our shops.” ditional investment beyond Las Vegas The shift of the fine-fragrance and Vegas-style shows. “In the U.S. it’s very Attendance at Cosmoprof rose 7 per- [Cosmoprof ’s current North American perfumery segments to Milan and basic, in my opinion.…Here, there is cent to 207,238 visitors, 59,319 of which fair]…in packaging.” the other trade shows is “not a politi- more style,” he said. came from outside Italy. Twenty-four na- Campagnoli said American buyers are cal issue” in the estimation of Fabio Rossello would like to include all the tional collectives, including newcomers very appreciative of Italian packaging, Rossello, president of Cosmetica Italia. elements of the local culture in the fair. such as Japan and Singapore, were pres- and therefore Cosmoprof is eyeing the “There’s this choice to have [the That’s why, for instance, Cosmoprof part- ent alongside 2,450 exhibitors. East Coast of the U.S. as a location for a awards ceremony] travel around Italy to nered with Vogue Italy for a Beauty Night — WITH CONTRIBUTIONS new packaging show. make it a more itinerant show,” he said, Out in Bologna on April 5. FROM JENNIFER WEIL WWD FRIDAY, APRIL 18, 2014 9 WWD.COM Navigating Milan’s Beauty Scene and in sync with the DNA of the fashion beauty brands at La Rinascente, while By PETE BORN and brand. The edp will be available in three the La Mer, La Prairie and The Fragrance CYNTHIA MARTENS sizes: A 30-ml. bottle will retail for 45 Kitchen brands are favorites among euros (about $62 at current exchange); a Milan’s tourists. The beauty department MILAN — No one retreats here. Despite 50-ml. bottle will retail for 69 euros (about generates only 17 percent of its sales from a lackluster domestic market for cosmet- $96), and a 75-ml. bottle will retail for 89 tourists — much lower than the 40 percent ics goods, manufacturers and retailers of euros (about $122.) average for the store — which Baldelli beauty products are pushing against neg- Perfume Holding is also drumming said indicates the department has a strong ative momentum to carve out new areas up its other brand houses, including its Italian following and has gained in market of opportunity. top seller Ferrari, which is expected to share. She also said fallout from a drop in Edoardo Bernardi, the new chief ex- launch a new fragrance in a year and a Russian tourists due to political upheaval ecutive officer and general director of the half. Also under consideration is the fur- had likely been offset by an increase in the Estée Lauder Cos. Inc.’s Italian branch, ther development of the Atkinsons and I number of Chinese shoppers. maintains that the local market is show- Coloniali brands. Following the 2013 acquisition of Danish ing slow signs of recovery. In addition to Even high-profile perfumery own- department store Illum, La Rinascente is opening new stores and improving service, ers can jump into the fragrance game. also preparing to revamp the Copenhagen Bernardi said the company was focused Augusto Mazzolari of Milan’s luxury flagship’s beauty floor in 2017, with special on “understanding consumer needs, es- cosmetics emporium Mazzolari has emphasis on skin care and color products. pecially where we are an authority” and CHINSEE GEORGE been busily developing his own line of “This is our first project outside Italy, it’s expanding communication to reach them Perfume Holding’s new scent. 19 scents, which range in price from 98 our chance to become international,” said in larger numbers and in different regions. euros (about $134) to 120 euros (about Baldelli. In the meantime, La Rinascente BY PHOTO The first Marni fragrance, which $164). Some of the fragrances, like the is gearing for the more immediate open- launched in 2012, has been selling well As for Italy’s current woes, Sacerdote vanilla, have a 50 percent ing in fall 2015 of its new and is available at about 300 doors in blithely replied, “It’s a moment,” adding concentration of essential Roman flagship: That will Italy, while a Michael Kors fragrance that fashion is selling more poorly than oils, and Mazzolari said be another opportunity launch next year will be sold initially cosmetics. “It’s a period of the country; he had sold about 500 for the chain to vary and in the fashion brand’s stores, as the it’s not the perfumeries. We have big bottles in the past three deepen its assortment label is still building awareness in Italy. opportunities outside [Italy],” she said, months at his five stores. while serving a markedly “Fashion distribution has to precede fra- noting Collistar was set to open at 80 He has also contin- different market, more ac- grance,” Bernardi said. Karstadt corners in Germany, and expan- ued to develop the new customed to small, family- He ticked off the gains by several sion was under way in Singapore, Hong underground perfumery owned shops rather than Lauder brands: Clinique is growing at a Kong and Malaysia. section of his sprawl- institutional department rate of 2 percent more than the market and ITF’s Roberto Martone and Gruppo ing complex, with an ex- stores. Intertrade Europe double its number of units; Tom Ford is Angelini’s Jordi Ballesté said they aimed panded offering for men’s ceo Celso Fadelli empha- up 60 percent since the start of 2014, and to boost ITF’s turnover by 20 percent this grooming, including the sized the importance of MAC Cosmetics is set to reach 25 doors year, principally by increasing exports Geo. F. Trumper brand, Augusto drawing in consumers across Italy this year, through nine depart- and expanding into new markets. which he nabbed after Mazzolari with an enticing environ- ment stores and 16 freestanding locations. Martone said Italy currently accounts the Lorenzi store on Via ment. He said he is in The Estée Lauder brand is gaining market for 12 percent of ITF’s turnover, and Montenapoleone closed. talks with luxury concept share with its makeup offering, which in- added: “In Italy, the general economy Never let it be said that store Excelsior to install cludes the new line of Pure Color Envy lip- is suffering. We hope the new trend of Mazzolari is closed-mind- an Avery perfume gallery sticks and Double Wear foundation, which [prime minister Matteo] Renzi will help.” ed: As part of the launch on the ground floor, similar brought the label from fourth to second Among the launches on this year’s cal- of the super-expensive to the existing Avery niche place in the foundation category. endar, he cited a unisex Pomellato fra- NEBU Milano beauty fragrance boutique on Taking a different approach, Collistar grance to make its debut this fall. brand, which features Corso Como. “Consumers — which does 60 percent of its business Perfume Holding landed a new license 24-karat gold packaging should not feel oppressed in Italy, mostly in selective perfumeries — from fast-growing apparel brand Liu-Jo, decorated with Swarovski by the fact that they’re ex-

has worked on luring Italian consumers which targets consumers in the accessible crystals, he staged a con- MAESTRI DAVIDE pected to buy something,” back into stores with a series of special luxury segment. The brand’s first women’s cert in the store with Fadelli said. promotions, said ceo Daniela Sacerdote. eau de parfum, called Liu-Jo, will launch NEBU’s face Tamara Gee, Euroitalia president As an example of retail-entertainment, in Italy in May and the Benelux region in a singer who has been Roberto Giovanni Sgariboldi is Collistar launched a color collec- June before moving to other markets. In compared to Céline Dion. Martone also thinking of expan-

tion for spring in collaboration a year and a half, a Liu-Jo eau de toi- La Rinascente’s Milan PHOTO BY MARTONE sion. During a recent with Sardinian designer Antonio lette is slated to launch, followed still Duomo flagship finished interview, he indicated Marras: The makeup items were further down the line by another, 2013 up 8 percent on the recently reno- that he had ideas for a new, innova- decorated with skeletal artistic sportier fragrance pillar. vated beauty floor, hitting 30 million euros, tive Moschino fragrance line: Perhaps line drawings, which echoed The first Liu-Jo scent is “a fun- or about $41 million, narrowly missing the Christmas would be an opportune time through the packaging and damental launch because it’s a 31 million euro ($42 million) plan at a time for a launch, considering that the fashion into the product itself. A strong brand in the fashion busi- when the market was down. That floor con- house has recently recruited a new cre- skin-care collection un- ness and for us it’s a huge oppor- tinues to run 10 percent ahead of last year. ative director, Jeremy Scott. Sgariboldi derscored the richness tunity,” said Perfume Holding During an interview, La Rinascente also hinted that Euroitalia is in talks to of Italy in producing raw ceo Dino Pace, who arrived head of beauty, children’s wear and toys sign another Italian fashion house to a materials, with the main at the firm in January. “After Cinzia Baldelli talked about plans to ex- perfume licensing deal this year, but he ingredient in each prod- [Liu-Jo’s] success in bags and pand the beauty franchise by adding a declined to discuss details. uct culled from a spe- shoes, it’s natural to go into new section called the Annex, dedicated Sgariboldi also ruminated on how the cific region highlight- fragrances — fragrances are to young beauty consumers aged 14 to 20 Italian beauty industry has evolved over ed on a map on the a key door to reach more years old. This is part of an overall strategy the years. “Many years ago, a small com- packaging. This year, customers,” he added, not- to make La Rinascente’s audience more pany earned 20 million to 30 million euros Collistar will repeat its ing Liu-Jo has an estimated youthful: She estimated that the average [$27.6 million to $41.4 million]. Now, a 2013 Christmas promo- 650,000 Facebook fans. age of the department store’s customer is small to medium-sized company earns 200 tion, which consisted of Created by perfumer 35 to 45 now, compared with 50 to 55 years million to 300 million euros [$277 million men’s and women’s cos- Véronique Nyberg from old in the past. “We need to have young to $416 million],” he said, commenting on metics packaged in beauty International Flavors & customers with us. It is a difficult chal- the absorption of smaller players by big cases from Piquadro, a Fragrances, the new juice is a lenge, but it will be our playtime,” she said. conglomerates and the present economic popular Italian leather Daniela fruity and oriental floral, which Currently, Dior and Chanel, followed difficulties of the domestic market. He said goods brand. Sacerdote she described as “luminous” by MAC and Tom Ford, are the top-selling partly in jest, “Made in Italy will save us.”

In addition, they accepted the nomi- Jean-Paul Agon Addresses Body Shop Challenges nation of Belén Garijo, president and ceo chose to operate the activity separately quisition of 48.5 million of its own shares of pharmaceutical firm Merck Serono, as By ALEX WYNNE from its four core divisions. from Nestlé and the sale of its 50 percent an external administrator, bringing the He explained L’Oréal aims to turn stake in Galderma to the Swiss firm. number of women on L’Oréal’s advisory PARIS — At L’Oréal’s annual general around The Body Shop’s ongoing lacklus- The transaction will see Nestlé re- board to five out of 14. meeting on Thursday, chairman and ter performance through its recent integra- duce its stake in L’Oréal to 23.29 per- As for L’Oréal’s ongoing target of at- chief executive officer Jean-Paul Agon tion into the company’s Selective Divisions cent of the share capital, from 29.4 per- tracting one billion new consumers in fielded tough questions from sharehold- portfolio, created last year, and by chang- cent, and increase the share held by the the 2020 to 2025 time frame, Agon said ers about The Body Shop, which has ing the operation’s management team. Bettencourt Meyers family to 33.31 per- expansion efforts in emerging markets, failed to grow in line with targets since In 2013, The Body Shop’s sales fell 2.3 cent from 30.6 percent. The operation notably through acquisitions, were help- its 2006 acquisition. percent to 835.8 million euros, or $1.15 was first announced in February. ing it to move toward the goal. “It is true that the integration has not billion at average exchange for the pe- It was one of a number of resolutions Recent acquisitions such as been successful. We were scared that the riod, while its operating profitability de- presented at the meeting. Interbeauty in Kenya, Vogue in Colombia company culture was so different, and clined by 50 basis points to 8.6 percent. L’Oréal shareholders also voted to ex- and Magic Holdings in China “bring us we didn’t want to destroy its value,” Agon Also at the meeting, L’Oréal’s share- tend Agon’s mandate as administrator of tens of millions of new consumers each acknowledged, adding L’Oréal therefore holders unanimously approved the ac- the company for a further four years. year,” said Agon. 10 WWD FRIDAY, APRIL 18, 2014

“Sometimes it’s only right to come rapper said in jest, noting the significance One9, Nas, Jabari “Jungle” Jones and Erik Parker. through and see such [figures] as the of his documentary’s place in the festival. Don right there, sharp as hell,” said “My pops come out. He don’t come out for Raekwon gestured toward Nas, who was nothing. This is major.” on the carpet clad in a distinguished- The crowd then moved to the after looking blue suit. party at Hell’s Kitchen nightclub Nas’ brother, Jabari “Jungle” Jones, Providence. Nas posed next to a giant steps out of his sibling’s shadow in the cake replica of the Queensbridge public film, playing a pivotal role in providing housing development where he grew a glimpse into the culture of urban up before he once again disappeared life in the early Nineties that shaped a from the public eye and, like the don burgeoning rap movement. “I wore a red he is, retired to the heavily guarded, shirt because this is my first time doing entourage-only VIP room. red-carpet interviews, so I wanted to — KRISTEN TAUER match the carpet,” said Jones. “I bought this so fast today. World premiere for the world premiere, red-carpet style.” Rosenthal said the film was selected for the opening night because both the rapper and the festival share a sensibility. “To tell the story of an artist who has survived and thrived in a rich culture, it’s spectacular,” she said. “What we Still the Don all have in common is community and telling stories, whether it’s through music or film, to show our similarities as THE TRIBECA FILM FESTIVAL opened more reflective. He is now 40, a father well as our differences.” Wednesday night at the Beacon Theatre of two who in 2012 released a heartfelt After the screening, Keys played a with a tribute to a legendary emcee. song called “Daughters” and last year piano rendition of “New York State of It was the world premiere of “Time appeared in a Christmas movie called Mind” before Nas, who had changed out Is Illmatic,” a documentary about the “Black Nativity.” He has even settled of his suit, walked onstage in an all-black seminal 1994 album “Illmatic” by Nasir old feuds with the likes of Jay Z — they get-up with a bottle of Hennessy in one Jones, better known as Nas. Directed by performed together at The Coachella hand, microphone in the other. Maybe One9 and produced by Erik Parker, the Valley Music and Arts Annual Festival old habits die hard. movie is being released alongside a this past weekend. In short, he is He went on to perform 20th anniversary reissue of the rapper’s enjoying the spoils of being one of his first album in its entirety, FOR MORE PHOTOS, SEE first album, which has held its place on music’s elder statesmen, like basking in calling out praise to the cast best-of lists and set a benchmark for the attention of some of his famous fans of producers, rappers, friends WWD.com/eye. Alicia Keys Jemima Kirke Wale Fab Five the genre, despite lack of commercial — , , , and family who helped STEVE EICHNER success at the time. Nas himself is a Freddy and Raekwon of Wu-Tang fame as establish his place in hip-hop Michael Mosberg different man than the provocative well as festival cofounders Robert De Niro — with a special shout-out to De Niro. and Jemima Kirke

rapper he was in the Nineties, mellower, and Jane Rosenthal. “He plays me all in those movies,” the PHOTOS BY

Christina Tallulah Willis, Hendricks Kilo Kish eye and Mallory Llewellyn.

For a

Kiernan Shipka

in Preen with AMY GRAVES January Jones in AMY GRAVES Helmut Lang. COS PHOTOS BY PHOTO BY

IN ANTICIPATION of the first West Kish and Natalia Bonifacci. Coast outpost by COS (Collection of “The COS man and the COS woman Mad About Choo Style), L.A.’s fashion set got a small have a particular mind-set. It’s a taste of the Swedish retailer on customer who is interested in art and BY TUESDAY NIGHT, Hollywood had best for walking too far. That’s Wednesday night at a pop-up shop design and demands a lot in quality. recovered from its collective Coachella why we’re sitting,” said Moore, located on the second floor of Opening This customer exists all over the hangover and was ready for a party perched by the living-room Ceremony’s Los Angeles boutique. world, but particularly here in Los of a more elegant sort. Jimmy Choo fireplace with stylist pals Emily Tallulah Willis grooved to En Vogue’s Angeles,” Andersson said. delivered with a glamorous fete at Current and Meritt Elliott. “Free Your Mind” as she surveyed the COS, an offshoot of H&M, has stores art collector Eugenio López’s Beverly Those who made it clothing racks. “I’m floored. I want across Europe, Asia and the Middle Hills pad, timed to celebrate the onto the patio enjoyed a basically everything. My top picks East, and the Beverly Hill store, which reopening of the footwear label’s Petrossian caviar bar set up would be that amazing denim chambray will be on North Beverly Drive, will Rodeo Drive boutique. “I can’t next to the pool and tunes overcoat and the silk jumpsuit and the open sometime later this year. believe we pulled this off. I keep spun by Solange Knowles. Jones striped shirt dress, but I’m obsessed. Several cool kids danced by the DJ going, ‘Is this a dream?’” said brought her sister along I’m in love with all of it.” The daughter booth to Blackstreet’s “No Diggity.” creative director Sandra Choi of for company, as did Zoey of Bruce Willis and Demi Moore is also “I’m the oldest person here, I think,” the chic midcentury setting, a Deutch, the daughter of Lea starting out on a new career path. said Silver, the owner of Decades, who perfect backdrop. Thompson. “I love modern art; She said she recently launched a said he’s been a fan of COS since its Jaime King, Kate Bosworth, I’m freaking out over this fashion blog, TheClothingCoven.com, inception. “Part of me is a little bitter Mandy Moore, Emmy Rossum, house,” said Madelyn Deutch, with a friend, Mallory Llewellyn. “Right that it’s getting more accessible in Camilla Belle, Zoë Kravitz and a gazing at the giant Jeff Koons now it’s just a fashion blog, but we America because it’s been my secret trio of “Mad Men” actresses Kate Bosworth in sculpture flanking the stage. have high hopes for it. We have some go-to,” he continued. “It’s so funny how — January Jones, Kiernan Shipka Christian Dior. “I think we’re in the wrong collaborations coming out soon that I’m vacillating about buying something and Christina Hendricks — profession,” said her sister. we’re excited about. It’s growing a little that’s $100. It’s the coolest $195 pants were among those working When band Bastille took to more rapidly than we thought it would.” I’ve seen in a long time, but this is a the stilettos. “I love that the stage on the rolling lawn, Martin Andersson, the brand’s head hard place to try on clothes. We are they look so dangerous, but most people forgot their heels of men’s wear, was on hand to meet shoulder to shoulder. The only way they’re so comfortable,” said and danced on the grass like they and greet a crowd that also included I can try on something is if someone Hendricks of her strappy were back at a music festival. Cameron Silver, Penny Lovell, Magda doesn’t mind me mooning them.” pumps. “Maybe not the — MARCY MEDINA Berliner, Nathalie Love, Jesse Kamm, Kilo — LINDZI SCHARF WWD FRIDAY, APRIL 18, 2014 11 WWD.COM

GO WEST: Dust off those cowboy boots. opposite Julianne Moore in David Cronenberg’s Surveying the lineup of next month’s “Maps to the Stars,” which takes a satirical Cannes Film Festival revealed in Paris look at Hollywood and the country’s rather FASHION SCOOPS on Thursday, one can’t help but notice: obsessive relationship with it, while The Western is having a revival. “The Gaspard Ulliel will take the lead in Bertrand Homesman,” for one, will compete for Bonello’s “Saint Laurent.” The biopic is A VERY MERRY MOTHER’S DAY: The was created by 22 designers who are the Palme d’Or. Starring Oscar winners said to feature “a surprise cameo,” though momentum continues to build for Born also mothers, including Miuccia Prada, Hilary Swank and Meryl Streep, the film was Frémaux would not give away the name. Free, the project that seeks to end Carolina Herrera and Donna Karan. “Every written and directed by Tommy Lee Jones, Kristen Stewart is expected to walk the mother-to-child HIV transmission in problem has a solution,” Karan said. “In who also took the leading role. “This is red carpet alongside Juliette Binoche for Africa. On May 11 — i.e., Mother’s Day this case, the solution is simple: Act on not your typical Western with Native Olivier Assayas’ “Sils Maria”; Jessica Chastain — Vogue, Diane von Furstenberg, Liya Kebede, our awareness. Put out the word. Make Americans and the cavalry,” cautioned will represent “Eleanor Rigby” by Ted Born Free founder John Megrue, Wangechi it happen. Create a movement of women the festival’s artistic director Thierry Benson with Isabelle Huppert, and Bérénice Mutu and Claire Danes will host a daytime designers and design a future. Together, Frémaux, but rather a look at European Bejo, who scooped the Palme for best Mother’s Day Carnival at Hudson River we can do this and make a difference.” immigrants settling in the new land. actress in 2013, will compete with her Park’s Pier 45 to celebrate the initiative. — MARC KARIMZADEH At Cannes, which runs from May 14 husband Michel Hazanavicius’ “The Search.” In support of Born Free Africa, it will to 25, the Wild West also figures Frémaux was eager to come replete with several experiences. TALL ORDER: Karl Lagerfeld loves a futuristic in Jean-Pierre and Luc Dardenne’s FOR MORE point out that two female These include live performances by skyline as a backdrop for Chanel fashion “Deux Jours, Une Nuit,” SCOOPS, SEE directors were selected Idina Menzel and Ariana Grande and the shows. He staged the company’s Métiers starring Marion Cotillard — “a for the main competition chance to practice baseball with the d’Art pre-fall show after dark on a barge Belgian Western,” to quote WWD.com. — Italian Alice Rohrwacher New York Yankees, throw footballs floating in Shanghai’s Huangpu River in Frémaux on the genre. “I’ll give (“Le Meraviglie”) and with the New York Giants (Victor Cruz 2009, and fall 2013 couture was paraded you time to reflect on what that Japanese Naomi Kawase (“Two is confirmed) and shoot hoops with in a crumbling theater set in Paris’ Grand is,” he mused. Windows”), who sat on the players from the New York Knicks. Palais with a mural on stage depicting Separately, Mads Mikkelsen will make an festival’s jury panel in 2013. Guests can also paint with Wangechi a dazzling 21st-century city. On May appearance opposite Eva Green in Danish He noted this year’s opening movie, Mutu; face paint with MAC Cosmetics 13, when he unveils Chanel’s cruise western “The Salvation” by Kristian Levring. “Grace of Monaco” starring Nicole Kidman, makeup artists, and do Legos with New collection in Dubai, it will be on an island will compete “in the only existing version York-based artist Nathan Sawaya. less than half a mile off the coast of the — that of the filmmaker,” he said firmly, Tickets for the event (sponsored by city. It is known officially as The Island, Marcello alluding to rumors that suggested that a Amazon Fashion, Shopbop and MAC located off Jumeirah Beach Road. Mastroianni cut version of the biopic was in the works. Aids Fund) are available at bornfreersvp. The event — partly indoors, partly on this Finally, after 13 years of absence, eventbrite.com. There is also a Born Free outdoors — is slated to start at 6 p.m., year’s Jean-Luc Godard will return to Cannes with collection, which will become available allowing guests to view a forest of official “Adieu au langage.” “He promised he at Shopbop.com next Wednesday and skyscrapers at sunset. — MILES SOCHA Cannes would show up, but with him you never Film know,” said Frémaux about the elusive Festival cofounder of the Nouvelle Vague. dad, Thicke offered, “My eldest son owns a poster. Godard will face fierce competition medical marijuana dispensary.” from the sprouting talent on the African MEMO PAD In the midst of Fortune’s Most continent, which this year will be Powerful Women dinner the same night, The festival also promises a flash represented by Mali-raised Abderrahmane POWER PACK: It was power night one waiter warned another, “If any of flood of cinema’s young and beautiful, Sissako (“Timbuktu”) and Philippe Lacôte in Manhattan Wednesday as The these people don’t have their water presenting a bonanza for fashion brands (“Run”) from Ivory Coast. Hollywood Reporter and Fortune glasses refilled within minutes, we’re looking for red-carpet exposure. The names of the jury members, magazine celebrated their own “Most going to hear about it.” Ryan Gosling will make his directing presided over by director Jane Campion, Powerful” lists — always a favorite The servers weren’t the only ones debut with “Lost River,” a dark drama are slated to be revealed next week. feature of publishers eager to drum up with a good read on the crowd. Samantha with fantasy allure. Robert Pattinson will star — PAULINA SZYMDKE advertising against them. Power, U.S. Ambassador to the United In one corner, THR celebrated its “35 Nations, not only addressed the Most Powerful People in Media” with devastation in Syria, the horrors in a party at that power restaurant the North Korea and economic sanctions Four Seasons. In the Pool Room, Harvey levied against Russia in the wake of the Weinstein chatted in the corner with ongoing upheaval in the Ukraine, but Janice Min, copresident and chief creative also what it’s like to be a double-fisted officer of THR and Billboard, while BlackBerry mother of two. Petra Nemcova, list members CBS chairman and chief CBS’ Gayle King, NBC’s Deborah Turness, Savannah Guthrie, Federica Marchionni, Lesley Stahl, Norm Pearlstine and Huma Abedin Martha were others in the crowd. Stewart “I feel good about my ability to be small space and Zac completely present within the context Posen. of also being a person who also has two BlackBerrys with them at all times. So you’re familiar with that kind of full presence. So bath [time] is a nice sacred BlackBerry-free zone just because how

NICHOLAS HUNT/PATRICKMCMULLAN.COM many have been ruined. You don’t want to miss the call, but you want to be fully there. Luckily, I have a great team, so PHOTO BY usually I’ll get an actual telephone call executive officer Les Moonves and Condé if I need to break away,” Power said. Nast artistic director and Vogue editor in With her elder child, who is almost chief Anna Wintour both posed for photos five, she tries to tell him what she’s doing and made quick tours around the room at work within limits. He is hip to the before making early exits. fact that all these international dealings Designers Gilles Mendel, Zac Posen, Jenna are what keeps Power away at times. Lyons and Cynthia Rowley made lengthier “So I’ve gotten ‘Enough Ukraine — it’s appearances, while Fox’s Bill O’Reilly and Ukraine, Ukraine, Ukraine,’” she said. Big Megyn Kelly hovered not far from the door, But a recent parent-teacher deep in conversation. Their new Fox conference revealed that he is listening colleague Maria Bartiromo sang the praises intently. “One of his very dear friends, of her employer, adding that since she’s two weeks ago, was trying to take the joined the network, she’s brought a toys he was playing with and try to twist to what she called “academic” create some sort of structure. And my Business Sunday morning news coverage. “No son, I would never guess is capable one ever connects the dots. It’s about the of this, said, ‘You’re just like Putin. It economy, it’s about jobs,” she said. “They doesn’t belong to you — it’s my toy,” [competing Sunday shows] only talk Power said. “And I was like, ‘Score.’” WWD Marketplace is the premier destination about it in an academic way. I’m bringing As an ambassador at large in Haiti, businesspeople into the conversation.” Nemcova, who spends about 45 percent While the room did not lack star of her time there, also spoke of foreign for the industry’s classified and career listings. power — Alec Baldwin, Susan Lucci, Arianna affairs. “Haiti is now the safest country Huffington, Martha Stewart, Clive Davis and in the Caribbean based on casualties per Patrick Stewart all made appearances — 100,000 people, and it has an economic one of the most talked-about guests was growth of 4.3 percent,” she said. With “Growing Pains” actor Alan Thicke. the help of corporate partners like 800.423.3314 Thicke, who was there with Tanya Clinique and Chopard, Nemcova said her Callau, whom he referred to as his “hot, nonprofit Happy Hearts Fund’s goal is to young Latina wife,” publicized his new build 100 schools in areas impacted by reality show “Unusually Thicke.” natural disasters this year. wwd.com/marketplace When asked what is the most surprising — ALEXANDRA STEIGRAD AND thing about the real life of American TV’s ROSEMARY FEITELBERG 12 WWD friday, april 18, 2014 WWD.COM Alliance Talks Milestones in Bangladesh No Resolution Yet The training program has included help workers identify safety risks, empow- By MAYU SAINI different levels of factory personnel, in- er them to communicate concerns and in- In China Protests cluding management, trade union mem- form them of the best way to evacuate the {Continued from page one} SHOWING ITS WILLINGNeSS to bers and workers’ representatives. building in the event of an emergency. be transparent and share progress, A grim reminder of the role of man- Tauscher said the Alliance remained Others said that Internet access in the the Alliance for Bangladesh Worker agers has been both the Tazreen fire in steadfast in its promise to bring change city has been intermittent as perhaps part of Safety held a press briefing in Dhaka November 2012, when managers and se- to the women and men whose liveli- an effort by authorities to curtail the spread Thursday. The Alliance represents curity personnel allegedly blocked an exit hoods depend on the safety of these fac- of news of the strike, particularly on social a group of North American apparel tories. “It has been our honor to return media, so as to not spark similar disputes at brands and retailers including Gap, to Dhaka this week to update key part- other factories. J.C. Penney, Kohl’s, Target, VF Corp. ners on our progress and ensure that In a statement, Adidas said it is “closely and Wal-Mart. Ellen O’Kane we are living up to our commitment to monitoring the situation” and “will conduct Led by ellen O’Kane Tauscher, chair help create a safer Bangladesh ready- a proper investigation as soon as the strike of the Alliance, this was the first such Tauscher said more made garment industry,” she said. is resolved.” A Nike spokesman said, “Nike interaction after the group’s new board She also addressed an issue that has is aware of and concerned by the events at was revealed earlier this month. Several than 400,000 factory caused concern among factory owners in the Yu e Yuen factory in Guangdong. We’re of the board members were present at Bangladesh: the payment to workers if a continuing to monitor the dialogue between the meeting. The members, who repre- managers and factory that was considered hazardous factory management and the workers, as sent a range of labor, government and was shut down for repair. Tauscher said well as production at the factory.” academia in Bangladesh, included M. workers had already the Alliance will pay 50 percent of the While perhaps the scale of the protests at rumee Ali, director of BrAC, and Atiqul total salary of those garment factories Yu e Yuen’s manufacturing base in Dongguan Islam, president of the Bangladesh that are temporarily closed or will be is unprecedented, the strike itself is not new. Garment Manufacturers and exporters been trained, and the closed. This would be for a period of two Increasingly, factory workers are standing up Association. rabin Mesbah, Alliance months in each factory, and the funds for their rights for numerous reasons. Labor vice president and managing director, intent was to train would be paid through factory owners. experts say there is a new awareness among and Ian Spaulding, Alliance senior ad- On Thursday, figures from the export blue-collar workers of their legal rights in viser, were also present. more than one Promotion Board also provided good China, and they are more willing to stand up Separately, the new board had its news to the garment industry. Figures for them. Also, the labor market is changing. 12: China jump (PQ); first meeting this week in Dhaka. million by July. for the last nine months showed total Unlike their parents, young people no longer Talking about the progress of the exports of $22.24 billion, with $18.05 bil- want to work in factories, which has resulted initiatives so far, Tauscher said that 50 lion of that garment exports. in a lack of laborers in China’s manufactur- Bangladesh; La Perla percent of the inspections have been and urged workers to go back to work and Despite the uncertainty surrounding ing epicenters in the east. Those still willing completed, with nearly 700 factories 112 workers were killed, and the rana the industry in the wake of the rana to take on factory jobs are now negotiating from which Alliance members source Plaza disaster last April, when the build- Plaza tragedy and election-inspired vi- for higher wages and better benefits, and are (pics) having been reviewed. She said that ing owner and management personnel re- olence, the growth for the segment has willing to take a stand if their demands are more than 400,000 factory managers portedly urged workers to go back to work continued, with knitwear exports total- not met. From June 2011 until the end of 2013, and workers had already been trained, despite apparent cracks in the building ing $8.83 billion, having grown by 16.4 there were nearly 1,200 strikes and protests in and the intent was to train more than and reports that the building was unsafe. percent, and the woven segment reach- China, according to the China Labor Bulletin. one million by July. The Alliance training programs also ing $9.22 billion, up 14 percent. Forty percent occurred among factory workers. Vlisco Hires Bank La Perla Details Global Expansion

To Explore Options By KArYN MONGeT La Perla plans to open more shops-in-shop. By MILeS SOCHA LA PerLA is expanding its luxury brand presence in the global market. PArIS — Vlisco Group, a Dutch maker of bold and Since the $135 million lingerie and swimwear brand colorful textiles marketed mainly in West Africa, was acquired in 2013 by Pacific Global Management — could be the next elite fashion supplier to be which also owns the elite World network of modeling snapped up by a luxury group — or possibly even agencies and Chinese entertainment management firm go public. Gold Typhoon — the Bologna, Italy-based company has WWD has learned that London-based private eq- been on a campaign to bolster its image and brand eq- uity firm Actis, which has owned Vlisco since 2010, uity on three fronts: retail, product expansion and an has given a mandate to Barclays to advise it on ways aggressive marketing and advertising initiative. to realize its investment in the 168-year-old firm, After years of financial uncertainty, the heritage brand based in Helmond in southern Holland. will reportedly be receiving a cash infusion of $160 million Murray Grant, a partner at Actis responsible over the next year and a half from Pacific, which is led by stores in Berlin, Munich, Düsseldorf and Vienna, as well for the Vlisco investment, confirmed it has tapped telecommunications entrepreneur Silvio Scaglia. Combined as a second location at the Barcelona airport where a Barclays to explore its options. wholesale and retail sales are projected to grow to around lot of russian tourists travel through,” noted Pellegrin. He noted that “we are not actively selling the $150 million this year, according to company officials. The U.S. market is also an important piece in La company,” while acknowledging the fund has re- The firm operates 210 monobrand stores and La Perla’s strategy. ceived expressions of interest. “We have to sell ev- Perla intimates, swimwear and men’s underwear and “One of the corporate directives is that our real estate erything at some stage,” he noted. loungewear are also sold internationally in a network portfolio is commensurate with our brand elevation,” ex- Actis invests in varied firms in Africa. of about 1,500 specialty and department stores. plained Suzy Biszantz, La Perla’s chief executive officer for It is understood some european funds have al- La Perla began building its new luxurious yet contem- North America. La Perla no longer has franchise partners ready been approached about the Vlisco opportunity. porary image this year at its flagship locations and stra- in North America, where it operates 11 freestanding stores. revenues at the company, which totaled 169 million tegic department stores, including the newly renovated “Our Madison Avenue flagship is getting a redo and euros in 2009, are believed to be approaching 300 mil- shop-in-shop at Printemps in Paris, which was opened we are renovating our South Coast Plaza [in Costa Mesa, lion euros, or $414.6 million at current exchange rates. April 1. The Printemps venue is the first to be redesigned Calif.] store,” said Biszantz. “We recently opened a Actis had set a goal to double the size of the by architect roberto Baciocchi who also designed the store in Honolulu at the Ala Moana mall, and in about business by 2015-16, a feat Vlisco should accom- redos of the Prada, Miu Miu and Church’s stores. The a year, we plan a larger space in Hawaii for men’s and plish this year. Management was tasked with new retail format is inspired by Italian architectural women’s products....We took over the franchise in Las transforming the company into a brand-oriented tradition with arches, an amethyst floor, onyx-color en- Vegas; we’re very close to a space in San Francisco, and fashion player, rather than just a textile designer trance and gilded metal hangers. Products are displayed we’re very actively looking in Atlanta.” She added that and manufacturer. To wit: It has begun exploiting in transparent, bottom-lit cases and velvet trays. the company will sign a lease for a boutique in Houston potential outside its core markets, enlarging its The relaunch, which includes made-to-measure ser- in January, and plans are to open two to three new bou- network of retail stores and expanding its product vices for personalized products, will gather steam in tiques in the U.S. in 2015. offer, including launching accessories and ready- redesigned La Perla stores and venues this year, said She further noted that La Perla will be unveiling a re- made garments. Joëlle Pellegrin, La Perla’s general manager for europe. launch of its men’s underwear and loungewear collections According to industry sources, LVMH Moët “We have plans to open more shops-in-shop and more at Pitti Uomo in Florence, and plans to stage a fashion Hennessy Louis Vuitton and Hermès International, direct La Perla stores in premium locations in europe,” show in June during the men’s market week. among european luxury players keen on securing rare said Pellegrin, noting the newest developments include regarding La Perla’s advertising initiatives, Biszantz and specialized suppliers, have kept an eye on Vlisco, a store opening in Zurich as well as makeovers of free- said there will be a “continuation of what the team in with Actis expected to exit within the usual five- to sev- standing units on Via Montenapoleone in Milan and Bologna has started with ‘The Women of La Perla.’” en-year investment horizon for a private equity player. Sloane Street in London. Photographed by Mert Alas and Marcus Piggott, La The fast-growing company produces about 70 mil- Plans are to open a new boutique in Saint-Tropez in Perla’s ad campaign for fall will feature three top mod- lion yards of fabric a year. It employs 2,700 employ- late April and two new locations in July: Saint-Germain- els: Liu Wen, Daria Strokous and Mariacarla Boscono. ees and a sprawling production complex that grew des-Prés in Paris, and a large-scale unit at Old Bond Fabien Baron is creative director. from the same spot where the founder started mar- Street in London replete with a lounge and VIP room. “We will continue top spend on fashion books like keting what is often called real Dutch Wax prints. The redesigned rue Saint-Honoré flagship in Paris will Vogue and Harper’s Bazaar. And we see travel and lux- etched copper rollers apply the wax that gives be unveiled in early fall, while an updated in-store shop ury as a strong crossover for the brand with the ritz- fabrics their intricate designs: All are printed on at Harrods in London will be finished in July, she said. Carlton and Four Seasons magazines with two-page and both sides and pass through 36 production steps. “In the second half of 2014, we plan to open new full-page spreads,” said Biszantz.

w18a012b;9.indd 12 4/17/14 7:38 PM 04172014193900