Inner Glow Its First Year on Counter

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Inner Glow Its First Year on Counter Page 1 Friday s s FINANCIAL: s EYE: NEWS: Gap profits fall 13.7 Bill Clinton, Artists and percent, page 2. Kenneth Cole, celebs turn Sharon Stone out for Louis and more at Vuitton’s BEAUTY: Nicole the amfAR Hong Kong Miller gets into gala in Cannes, exhibit, s Frenzy, page 6. page 4. page 3. Women’s Wear Daily • The Retailers’ Daily Newspaper • May 22, 2009 • $3.00 WwDFRIdAYBeauty Inner Glow Giorgio Armani is pushing to increase his share of the women’s fragrance market this fall with his newest scent, Idole d’Armani. Hitting counters globally in September, the signature scent is positioned as a tribute to his many muses and could surpass $100 million at retail worldwide in its first year on counter. For more, see page 6. Versace Plots Future: Firm Hires Bain & Co. To Devise 3-Year Plan By Luisa Zargani MILAN — There appear to be changes afoot at Versace. Sources here claim Giancarlo Di Risio is leaving as chief executive officer following reported strategic differences, while Bain & Co. has been called in to advise the Versace family on the brand’s future direction. But the family, who owns 100 percent of the company, issued a rare statement Thursday denying the “professional relationship between the company and its ceo has been terminated.” The statement, which didn’t mention Di Risio by name, was not on the company’s letterhead and highlighted that it was sent from the family and not the firm. In the statement, the Versaces said Bain & Co. has drawn up a three-year industrial plan See Versace, Page11 LEXIE MORELAND and PHOTO BY GEORGE CHINSEE; STYLED BY DANILO MATZ MATZ DANILO GEORGE CHINSEE; STYLED BY PHOTO BY 2 WWD, FRIDAY, MAY 22, 2009 WWD.COM Gap Earnings Fall 13.7 in Quarter By Alexandra Steigrad After The Buckle blew past analysts’ estimates with a 43.5 percent profit increase Thursday OLD NAVY, LONG THE GAP INC.’s BIGGEST morning, shares of the Kearney, Neb.-based WWDFRIDAYBeauty problem, became something of a savior in the specialty retailer rose 5.3 percent to $34.57 GENERAL first quarter as the division’s improved results later in the day. Sources claim Giancarlo Di Risio is leaving as helped its parent firm exceed expectations de- Net income rose to $26.9 million, or 58 cents 1 Versace chief executive officer following reported spite a 13.7 percent profit decline. a diluted share, as sales in the quarter rose 24.6 strategic differences. Net income for the three months ended May 2 percent to $199.7 million and grew 17.7 percent totaled $215 million, or 31 cents a diluted share, on a same-store basis. Analysts polled by Yahoo 6 With his latest fragrance, Idole d’Armani, Giorgio 1 cent better than analysts’ consensus estimates Finance expected earnings of 50 cents on sales Armani wanted to celebrate the women who have but below the $249 million, or 34 cents, reported of $195.4 million. Gross margin improved to 43.4 influenced his life. for the year-ago quarter. percent of sales versus 40.9 percent a year ago, Nicole Miller is hoping to put a little edge into Net sales fell 7.6 percent to $3.13 billion. principally on lower markdowns. 6 While comparable-store sales fell 8 percent, The company said its women’s business grew the prestige fragrance category with Frenzy, Old Navy registered the smallest decline, 3 to 59.5 percent of the total, up from 55 percent her newest scent due out in August. percent, versus slides of 12 and 13 percent for in last year’s quarter, while men’s receded to 7 Ermenegildo Zegna’s fourth scent, Zegna Colonia, the North American units of Gap and Banana 40.5 percent from 45 percent. Men’s average is due to be launched this summer at 2,500 doors Republic, respectively. price points increased 9 percent to $48.05, while in the U.S. and Zegna’s 13 boutiques. Gap’s results came after the close of the mar- women’s price points rose 5.5 percent, to $41.10, ket, as did improved bottom-line results from in the year-ago quarter. Private label eased to 7 Henri Bendel is taking an inside-outside approach Aéropostale Inc. and Pacific Sunwear of California about 28 percent of sales, from slightly under a to beauty with FunctionaLab, a high-end range of Inc. However, Zumiez Inc. weighed in with a loss third a year ago. health and beauty supplements. versus a year-ago profit, although its results were “Right now, there’s several good things going 8 London-born brands Pixi and Pop Beauty have somewhat better than analysts had expected. on with the brands, so that’s just taking the moved to Southern California and are aiming to Raising the performance bar to a level not growth out of the private label at this point,” bolster sales in the U.S. and worldwide. matched by its specialty store competitors, The president and ceo Dennis Nelson said on the Buckle Inc. reported strong results before the company earnings call. 11 Liz Claiborne Inc. ceo William McComb told market opened. (For more financial results from The company opened six stores and closed shareholders at the firm’s annual meeting that retailers, see page 13.) one store during the quarter and anticipates restructuring efforts would lead to better times. opening 21 stores this year. It EYE: Leave it to Sharon Stone to convince film s 4 has 392 stores in operation. bigwigs to part with their dosh during amfAR’s annual Like Buckle, Aéropostale Marion Cotillard Cinema Against AIDS benefit auction Thursday night. finished the quarter with higher sales and profits, but Classified Advertisements.................................................................................................15 fell 1 cent short of analysts’ TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS earnings expectations. [email protected], USING THE INDIVIDUAL’s NAME. Net income rose 81 per- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 cent to $31.7 million, or 47 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 108. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with cents a share, from $17.5 mil- one additional issue in January, May, October, November and December, two additional issues in March, April, June lion, as sales bounded 21.3 and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services percent to $408 million and provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. comps grew 11 percent. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage Julian Geiger, chairman paid at New York, 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 and ceo, said consumers addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES would remain price-sensitive TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS for the foreseeable future, CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed but that the company would on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all continue to keep up with editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. fashion trends. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. “While price is important, Occasionally, we make our subscriber list available to carefully screened companies that offer products and services product is more important,” that we believe would interest our readers. If you do not want to receive these offers and/or information, please The Buckle set the pace for earnings with a 43.5 percent profit increase. he noted on an earnings call advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, Thursday afternoon. UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR During an earnings call Thursday evening, The firm projected second-quarter earnings ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY Gap chairman and chief executive officer Glenn of 43 to 45 cents a diluted share, up from 31 WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE Murphy appeared to summarize the feelings of cents a year earlier. Aéropostale has 911 North ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. many retail executives during this first-quarter American stores targeting 14- to 17-year-olds. earnings season. Pacific Sunwear of California wasn’t able to gen- CORRECTION “The market conditions from our perspec- erate a profit, but it did significantly shrink its Koltov previously manufactured Sag Harbor handbags.
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