PHOTO BY JOHN AQUINO; STYLED BY DANILO MATZ Everyone’s DoingIt:BeautyJoins Holiday’sDiscountMania from sight as they happily stumble upon from sightastheyhappilystumble upon out nearlyallnon-salemerchandise shoppers haveputblinderson,blocking no deal. purchases throughanewlens:deal or Holiday shoppersareviewingbeauty By WWDStaff Silver Bells Silver fi globally, coulddo$20millionatretailgloballyinits which willbelaunchedinMarchtheU.S.andApril launch ofhisnewestfranchise,Essence.Thescent, women’s fragrancemarket thisspringwiththe Narciso Rodriguez planstotake ashinetothe rst yearoncounter. For more,seepage6. Industry experts report this season expertsreportthisseason Industry Women’s Newspaper Daily •December19,2008$3.00 Wear Retailers’ •The Daily WWD execs, page2. fashion, media scalds former Madoff scandal NEWS: Beauty ▲ move merchandise, U.S. department move merchandise,U.S.department prestige beautyproducts. the lastdiscount-freestronghold: markdowns inwhatwasonceconsidered forced departmentstorestosuccumb to Their bargain-huntermentalityhas ample discountsinstoresandonline. To getinshoppers’lineofvisionand FRIDAY 5th Ave., page4. set tolaunchon Giorgio Armani ▲ RETAIL: — ends the industry’s decades-old taboo decades-oldtaboo — endstheindustry’s floor —whetherseasonalorlonger term promotional environmentonthebeauty discounts, couponsandfreebies. to aggressivenewtactics,including and specialtystoreshaveresorted In the U.S., the heightened In theU.S.,heightened

page 2. up forsale, Truex put Lambertson ▲ NEWS: See

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8 For For see see 2 WWD, FRIDAY, DECEMBER 19, 2008 WWD.COM Madoff Scandal Hits Fashion Industry By Lisa Lockwood Penney said she was introduced to Madoff ’s investment fi rm through “an old wealthy fam- FORMER FASHION AND MEDIA EXECUTIVES ily friend.” WWDFRIDAY are among those who have lost significant sums “I had all my money in the bank, and then Beauty in Bernard Madoff ’s alleged $50 billion Ponzi put all my money into it [Madoff ’s fi rm],” said GENERAL scheme. Penney, a professional photographer and author Those caught up in Madoff ’s investment scam of several books, including “How to Keep Your 1 Beauty shoppers have put blinders on this season, are said to include former Leslie Fay chairman Man Monogamous,” and “How to Make Love to blocking out non-sale items as they stumble upon and chief executive offi cer John Pomerantz and Each Other.” ample discounts in stores and online. his wife Laura, principal at PBS Realty Advisors Unquestionably, the financial impact on Tommy Hilfi ger is returning to the Bryant Park LLC; Adrienne and Luigi Vittadini; Nine West fashion-related charities, many of whose donors 2 tents in February for the fi rst time in three years, founder Jerome Fisher; Kay Windsor founder have been fi nancially wiped out, will be sizeable Carl Shapiro; Lee Mellis, former chief fi nancial in the future. “The charities will be impacted by even as other designers mull pulling out. offi cer of Puritan Fashion Corp., and Alexandra it. Most of those who support the charities and Barneys New York will double the size of its pres- Penney, former editor in chief of Self. attend the functions were damaged by Madoff. 4 ence on Chicago’s Oak Street this spring, moving It’s got to have an effect,” said Richard across the street to a new six-story structure. Feldman, president of Castle Hill Apparel, who wasn’t an investor with 4 President-elect Barack Obama is set to nominate Madoff. former Dallas Mayor Ron Kirk as USTR and Rep. Marcia Stein, executive director of Hilda Solis as Labor Secretary today. Citymeals-on-Wheels, said so far the 6 BEAUTY: Narciso Rodriguez is headed back to the charity has suffered a loss of $200,000 fragrance counter this spring with a new women’s from a few donors who won’t be giving brand called Essence, his second scent franchise. this year, which equates to 31,000 meals. “It’s a shame for everyone,” she said. Makers of mannequins, fi xtures and decorative ▲ 14 Some recent media reports have in- displays showed off their latest designs at the correctly stated that the UJA-Federation National Association of Display Industries market. suffered losses associated with the Fiscal 2008 remained a tough year for Escada, Madoff situation. However, John Ruskay, 14 PHOTO BY REUTERS/SHANNON STAPLETON/LANDOV PHOTO BY with operative earnings falling 71.1 percent and executive vice president and ceo of UJA- group sales declining 15.1 percent. Federation of New York, said, “UJA- Federation of New York did not invest, Classifi ed Advertisements...... 15 Bernard directly or indirectly, in Madoff securi- Madoff ties, and did not experience any loss as- TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS sociated with this recent event.” [email protected], USING THE INDIVIDUAL’S NAME. Rena Rowan Damone, the fashion WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2008 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. Madoff was arrested last week and charged VOLUME 196, NO. 129. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with with a massive securities fraud. He made his one additional issue in January, October and December, two additional issues in March, April, May, June, August and fi rst public appearance at the federal court- Everybody’s kind of November, 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 house in Manhattan on Wednesday, where he “ provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. was ordered to undergo house arrest and wear disappointed. And the stores Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage an electronic bracelet. paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail Agreement No. 40644503. Charities, hedge funds, universities, individual are empty. It’s a sad time. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES investors and banks have reported losses of more — Rena Rowan Damone, designer” TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS than $20 billion so far from Madoff ’s alleged mul- 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 tibillion-dollar pyramid scheme, which is believed on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all to be one of the largest frauds in U.S. history. designer who now lives in Palm Beach, Fla., editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. Shapiro’s total exposure to the Madoff fund was hadn’t invested any money with Madoff, but de- 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. said to be $545 million, and of that, the Shapiro scribed the mood in Palm Beach on Thursday Occasionally, we make our subscriber list available to carefully screened companies that offer products and services Family Foundation, founded by Shapiro and his as somber. She said she’s heard rumors they that we believe would interest our readers. If you do not want to receive these offers and/or information, please wife, Ruth, lost about $145 million. The founda- might have to close the Kravis Center for the advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT tion has given more than $80.3 million over the Performing Arts in West Palm Beach “since most RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR past decade to hundreds of schools, hospitals, of the supporters were from the [Palm Beach] ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER arts groups, and community-based nonprofi t orga- Country Club.” Madoff was a member of the club, MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY nizations. Nine West’s Fisher is said to have lost as were many of his investors. One of the require- WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. $150 million. The Pomerantzes, the Vittadinis and ments of being admitted into his funds was to give Mellis couldn’t be reached for comment Thursday. a signifi cant amount to Jewish charities. Penney said she lost her entire life savings. “Palm Beach will change. A lot of the res- “There are people who are worse off than I am, taurants where you couldn’t get a reservation DAILY but it’s the shock and trauma [of losing] every cent are practically empty,” Rowan Damone added. It’s all gone and I I’ve ever earned with my own brains,” said Penney “Usually you can’t park [in Palm Beach], especially “ in a telephone interview Thursday. “I never inher- around Christmastime, and it’s not crowded since QUOTE don’t know what I’m ited a dollar or took a cent of alimony. It’s all gone, this happened. Everybody’s kind of disappointed. going to do and I don’t know what I’m going to do.” And the stores are empty. It’s a sad time.” ” — Alexandra Penney, former editor in chief of Self, who Samsonite to Sell Lambertson Truex Stake invested with Bernard Madoff. Page 2. By Sophia Chabbott [began],” said Lambertson. “Samsonite, up until now, has been a great partner. They helped us TODAY ON LAMBERTSON TRUEX, THE LUXURY AMERICAN open the three stores. We would never have been accessories brand, is on the selling block. able to do it without their support.” Samsonite, the luggage maker, acquired a con- Lambertson Truex caters to a wealthy clientele trolling stake in the New York-based fi rm in 2006. of women and men, with bag prices averaging “It’s true we’re considering selling at $3,000 to $5,000 and exotic skin pieces our stake in Lambertson Truex,” said that can climb upward of $16,000. WWD Richard Brett, global vice president John Truex and In the past two years, Lambertson of marketing and communications at Richard Lambertson Truex opened its fi rst stores, in .COM Samsonite’s offi ces in London. “We New York, Los Angeles and Las want to focus on our core volume Vegas. The stores bowed at a brands and brand extensions.” time when many upscale ac- Samsonite has several brands cessories boutiques, such as under its luxury Black Label Mulberry and Roger Vivier, line, including lines designed opened units in the U.S. by Alexander McQueen and Truex’s shops are a lav- Viktor & Rolf. ish home for the brand’s exotic Richard Lambertson, who skin bags, leather satchels and founded Lambertson Truex a de- footwear. The stores also have a cade ago with John Truex, confi rmed bespoke element in which customers • WWDBlog on the that the company is for sale. When it can customize their own designs with Kate upcoming red- was purchased by Samsonite in 2006, indus- prices that range from about $3,000 to $25,000. Winslet carpet season try sources estimated the brand to have annual The brand also has distribution in Saks Fifth wears • Featured images sales of $50 million. Avenue, Neiman Marcus and Bergdorf Goodman, Badgley • Global breaking news “John and I are actively looking for a fi nan- in addition to other specialty doors. Mischka. PHOTO BY DONATO SARDELLA DONATO PHOTO BY cial partner to take off where these proceedings — With contributions from Samantha Conti MITRA ROBERT PHOTO BY • Daily stock prices 31484GLM_WWD_Nicole.indd 1 AN AMERICAN ICON SINCE1939 1 I think… Glamour, I think When

—Nicole Richie

12/16/08 3:46:20PM 1 PHOTOGRAPHY: JAMES WHITE 4 WWD, FRIDAY, DECEMBER 19, 2008 WWD.COM Glass Cube Look of Fifth Ave. Armani Flagship

By Alessandra Ilari A rendering of the Giorgio Armani Fifth Avenue fl agship. MILAN — New York’s retail scene is about the get a bright new cube: Giorgio Armani’s sprawling Fifth Avenue flagship is set to open Feb. 18. Armani describes the concept store, which brings under one roof his Giorgio Armani, Emporio Armani and Armani Jeans lines, as “a special project requiring a degree of courage.” “I was determined to send out a clear message of change, interpreting the current trend for mixing genres and juxtaposing items in different price brackets,” said Armani. The designer stressed he chose Fifth Avenue because, while it may be less exclusive in “character than comparable addresses, it has a demo- cratic mood which I’m certain represents the future.” I was determined to send out a clear “message of change. ” — Giorgio Armani Once again, Armani turned to architects Doriana and Massimiliano Fuksas to help him plot out the 43,000-square-foot glass cube. The main concept behind the building is that of a fl uid space that exudes a sense of movement via curved walls. A grand staircase made with rolled calender steel covered in a plasticized material enhances its sculptural, vortexlike form. The colors are Armani-esque, with a plethora of beige and black with fl ashes of glossy metal and special lighting. The four-level store develops vertically, spanning from casual to posh. Sportswear by EA7 and Armani Jeans sits in the basement, while Emporio Armani and Giorgio Armani accessories are housed on the ground fl oor. The farther up customers go, the more sophisticated the selection becomes — including red-carpet gowns. The second fl oor will be the beauty realm with the designer’s cosmet- ics line and fragrances, while the his complete men’s wear selection from his different lines will be on the third level. The fl agship also will have dedicated areas for Armani Casa and Armani Dolci, plus a restaurant and bar on the top fl oor overlooking Central Park. The designer has created special capsule collections of accessories and clothes for the store for both Giorgio Armani, which are limited edition pieces, and Emporio Armani, with exclusive Armani/5th Avenue tags. Barneys to Expand in Chicago Obama Set to Fill USTR, Labor Posts By Kristi Ellis WASHINGTON — President-elect Barack Obama is set to nominate former Dallas Mayor Ron Kirk for U.S. trade representative and Rep. Hilda Solis (D., Calif.) as secretary of labor. Both cabinet-level posts will oversee agencies that craft policies and reg- ulations affecting the fashion industry, from international trade to domestic manufacturing. The nominations are expected to be announced at a news conference today, said a Democratic aide, speaking on condition of anonymity. Kirk developed a pro-trade reputation while serving as mayor of Dallas from 1995 until 2001, expressing strong support for the North American Free Trade Agreement in his inauguration speech, according to press reports. Obama has said he wants to strictly enforce labor and environmental provisions in existing labor agreements, including the possible renegotiation of NAFTA, and insist on their inclusion in any future pacts. Kirk’s name surfaced this week after Rep. Xavier Becerra (D., Calif.) dropped out of the running for the trade chief slot. Kirk is unknown to most industry lob- byists and Washington trade veterans. A rendering of the Barneys New York Oak Street store. Barack Obama has said he wants to strictly COURTESY OF JEFFREY HUTCHISON & ASSOCIATES LLC OF JEFFREY HUTCHISON & ASSOCIATES COURTESY enforce labor and environmental provisions By Beth Wilson and Balenciaga, among others, will span 4,000 square feet, up from its current in existing labor agreements, including the BARNEYS NEW YORK WILL VIRTU- 1,200-square-foot space available for shoes. ally double its size along Chicago’s Oak The new Barneys will also boast larger possible renegotiation of NAFTA. Street this spring, moving across the street areas for jewelry and accessories, includ- to a new six-story structure complete with a ing a shop for Valextra leather goods, as If confi rmed by the Senate, Kirk will carry out the president’s trade agenda, penthouse-style Fred’s restaurant and 90,000 well as new personal shopping and con- lead trade negotiations with foreign countries and act as the enforcer of trade square feet of selling space. cierge services. agreements. “We wanted to give our Chicago custom- From a design perspective, the store Solis, whose agency will enforce wage, hour and worker safety laws, such as ers a richer experience, something that will possess similar signature Barneys overtime and minimum wage, was fi rst elected to the House in 2000. She would will parallel the Madison Avenue fl agship features, such as a long, open fl oor plan be the fi rst Hispanic woman to serve as labor secretary. in New York,” said Simon Doonan, Barneys and a gallerylike interior, along with two Solis’ tenure in the House has focused largely on affordable health care and New York creative director. “It would have grand staircases visible through a glass protecting the environment, but her exposure to sweatshop labor in the apparel been very easy to stay where we were, but curtain wall. Its exterior references ele- industry has deep roots. As a California state senator in 1995, Solis represented this next step feels right for us.” ments of late-19th-century Chicago. the city of El Monte, which was the scene of one of the most egregious abuses of Barneys opened its original Windy City The top fl oor Fred’s restaurant, which apparel workers in modern times. store, which features 52,000 square feet of features outdoor seating with views of Lake The El Monte sweatshop case, in which federal offi cials uncovered more than retail space, at the corner of Oak and Rush Michigan, no doubt will be a welcome addi- 70 Thai immigrant workers stitching clothing in virtual servitude for several U.S. streets in 1992. tion to the upscale shopping street — home apparel brands, spawned a national movement against apparel sweatshop abuses In the newly constructed corner building to Prada, Hermès and Harry Winston — headed by then-Labor Secretary Robert Reich in the Clinton administration. just west of its existing location, Barneys given that few food options presently exist. Solis held hearings on the El Monte case and later sponsored a joint liability will offer an expanded collection of ap- Cindy Schwartz, who is the vice presi- bill that would make manufacturers fi nancially responsible for all wage viola- parel from Lanvin, Givenchy and Bottega dent and general manager of Barneys in tions by their sewing contractors, including industrial homework and failure to Veneta. The new shoe salon, featuring the Chicago, will retain that position with pay minimum wage and overtime. She also led the battle to increase the state’s work of Christian Louboutin, Givenchy the move. minimum wage from $4.25 to $5.75 an hour in 1996. THE RELATIONSHIPS, STRATEGIES AND SALES MARKETING MUSCLE TO BUILD YOUR BEAUTY BRAND. YOUR MOVE. 71=<Q][PW\SaaOZSaO\R[O`YSbW\URWaQW^ZW\SaW\b]]\SQ]VSaWdST]`QSb]STTSQbWdSZg PcWZR`SZObW]\aVW^aab`ObSUWSaO\R^`]U`O[abVOb[]dSg]c`P`O\RT`][bVSQ]c\bS`b] bVSQ]\ac[S`EVSbVS`g]c¸`SXcabS\bS`W\UbVS[O`YSb]`O\SabOPZWaVSRP`O\RQOZZ]c` ICON >`SaWRS\b2O\O9ZW\Sb]¿\R]cbV]e(  #&$ f!

9Sg@SbOWZ>O`b\S`aVW^a’0SOcbg3f^S`bWaS’2`WdS\AOZSa4]`QS’1cab][WhSR0caW\Saa;]RSZa ASZZW\UAb`ObSUWSa’1][^`SVS\aWdSAOZSaB`OW\W\U’4ZOeZSaa3fSQcbW]\ 6 WWD, FRIDAY, DECEMBER 19, 2008 The Beauty Report Rodriguez’s Essence of a Woman Remède Revs Up By Julie Naughton was that: there was this very mysterious black bottle en- LABORATOIRE REMEDE IS POSITIONING cased in another classic bottle. Now that idea has been itself for a growth spurt in 2009. NARCISO RODRIGUEZ IS HEADED BACK TO THE reinvented for Essence and made very modern and very The brand plans to launch three facial skin fragrance counter with a new women’s brand due this sensuous by this futuristic but very accessible and very care collections designed to target specifi c spring. Essence, the designer’s second fragrance fran- tactile bottle. It’s not some fabricated version of futurism. skin types in February, along with repackag- chise, will be launched in March in the U.S. and globally It’s modern beauty.” ing one of its existing best-selling lines. in April, in limited distribution. While the fragrance’s offi cial global on-counter date is “The new skin care system is engineered to “I wanted to create something that refl ected the house, April, the scent will actually bow in the U.S. on March 1. both reactively and proactively repair and re- but something fresh and new,” Rodriguez said during The U.S. is getting a one-month jump because Rodriguez energize skin while simultaneously protecting a recent interview at the Gramercy Park Hotel here. is an American designer, noted Eric Henry, chief operating against future skin damage caused by external Rodriguez’s fi rst fragrance, an eau de toilette dubbed For offi cer of BPI globally. factors,” said Whitney Topping, marketing direc- Her, made its debut in fall 2003, and an eau de parfum ver- Saks Fifth Avenue will have a seven-month exclusive, tor for Laboratoire Remède. “Advanced ingredi- sion was launched in fall 2004. His sole men’s scent, For said Nicholas Munafo, president of Beaute Prestige ent combinations work dynamically with an ex- Him, was launched in 2007. International USA. Essence will roll into additional clusive delivery system to achieve unparalleled “Essence is very sexy but has that crisp, clean, pure U.S. specialty store doors in late fall 2009, although performance levels.” As well, all of the items are quality of sunlight,” continued Rodriguez. “It’s a bit of a the fragrance’s U.S. distribution won’t top 150 doors phthalate- and paraben-free, said Topping. collage — the iris, rose and amber that I love — and by year-end 2009, said Munafo. “Even fi ve years Matte Therapy is designed for oily skin; how you can layer these things over the musk later, we’re in fewer than 500 U.S. doors Hydra Therapy for dry and sensitive skin, and and create that feeling of joy. It’s about a with For Her,” he said. “We’re continu- Wrinkle Therapy for skin showing the signs different facet of a woman. As there is ing to keep the brand very exclusive.” of aging. Common to all is the brand’s Skin day, there is night,” he said, referring Other global exclusive engage- Reaching Technology-21 (SRT-21), a “smart” to the difference between the two ments of varying lengths will be delivery system intended to carry active in- brands. “This is a great refl ection of at Harrods in the U.K., Galeries gredients to the part of the skin where they that. Essence is quite pure, fresh Lafayette in France and Lane are needed most, said Topping. and sexy, where For Her is more Crawford in Hong Kong. The products (the cleansers excepted) also seductive,” he said, implying that Narciso Eventually, it will be available include the brand’s Green Defense, a blend the original scent is geared more Rodriguez in close to 50 countries in which of white Nymphaea fl ower extract and 36 vi- for evening. “This is a clean take Rodriguez’s scents are already tamins and minerals said to reduce DNA frag- on that same girl.” distributed, said Henry. mentation and delay the aging process. Each While many designers sup- Advertising, featuring also includes a proprietary blend of “techno- plement their launches with Catherine McNeil and shot numerous fl ankers, Rodriguez JOHN AQUINO PHOTO BY by Inez van Lamsweerde and has long preferred a more re- Vinoodh Matadin, will run pri- Wrinkle strained plan. “I value the slow- marily outside the U.S., although Therapy and-steady approach, especially the visual is expected to be used items. with something like fragrance, in Saks Fifth Avenue promotional where you really need a great deal efforts. More effort in the U.S. will be of time to think about it and develop placed on the brand’s Muse program, it and refi ne it,” he said. “I’m interested which involves individually hand-selling in creating things that are lasting, that have fragrances to clients via personal service and great substance and thinking behind them. They’re deluxe sampling. “Narciso Muses build the business based in design and craftsmanship.” person by person, store by store,” said Munafo. The Essence juice, concocted by Firmenich’s Alberto “The product is the key to success, but the other 50 per- Morillas, is a fl oral, powdery musk with notes of iris pow- cent is the people that make it happen,” added Henry. der, rose petals and benzoin balm built around a heart of Rodriguez, Henry and Munafo declined to discuss modern musks. Musk is the designer’s signature note and sales projections and advertising and promotional spend- has appeared in all of his scents in one form or another. “I ing. Industry sources estimated that Essence would do love [musk] so much for its beautiful qualities, its rawness upwards of $20 million at retail globally in its fi rst year and its sensuality,” said Rodriguez. on counter. The collection consists of eaux de parfum in two sizes, As for the economy? “It’s almost a bit of an exciting 1.6 oz. for $78 and 3.3 oz. for $100; as well as a 6.7 oz. body challenge,” said Rodriguez. “Good things are born from blends” said to target specifi c skin concerns. lotion, $48; a 6.7 oz. shower gel, $40, and a 3.3 oz. deodor- hard times. For me, creating products, things that are Matte Therapy’s formula is a blend of Chilean ant spray, $33. more desirable, delivering things that are better made wild mint extract, Chinese rose fruit extract and The bottle, a rounded glass with a mirrored core, out of better fabrics that might even be more expensive — amino acids, said to regulate sebum and purify was created by Rodriguez and designer Ross Lovegrove. we’re not slashing prices. I think that’s the wrong strategy. pores, in addition to moisturizing and stimulat- “It’s an idea that started with For Her. I loved the idea Certainly, I hope women fi nd this to be the antidote for ing cell renewal. A 5-oz. Cleansing Gelee is $44, of duality, that you have to get close to someone to know hard times, that this gives them as much pleasure in this and a 1.7-oz Moisture Lift Gel-Lotion is $115. what they are on the inside. The packaging for For Her economy as it gave me creating it.” Hydra Therapy combines glasswort extract, trehalose and cottonseed oil, said to correct the signs of aging while easing dryness and discom- fort. A 5-oz. cleanser is $44; a 0.5-oz. Eye Creme The Lift is $110, and a 1.7-oz. Lift Creme is $130. Chanel: Building a New Foundation Lumière Wrinkle Therapy consists of Mediterranean foundation. myrtle extract, soy extract and amino acids, CHANEL PLANS TO ESTABLISH The foundation is made of a botani- said to help rebuild the collagen networks, a new base for its beauty business cal complex said to protect collagen promote cell longevity and foster cell com- in February with the launch of Lift and elastin from the effects of free rad- munication to repair mature skin cells, said Lumière, its newest foundation and icals, along with Liftoptic, a proprie- Topping. A 0.5-oz. Eye Baume is $110 and concealer line. tary ingredient composed of spherical 1.7-oz. Moisture Lift Baume is $130. The range is intended to target silicone powders intended to defl ect A group of what Topping calls “all-around an age-conscious client who also light away from wrinkles. It also in- products” — four items suitable for all skin wants full coverage, said Christine cludes photochromatic pigments said types — range in price from $40 for a 1-oz. Dagousset, executive vice president to keep the color true in any light. Translucent UV Coat to $130 for a 1-oz. of Fragrance and Beauté for Chanel. The concealer includes a tetra- Intensive Double Serum. “The Lift Lumière launch fi ts into peptide said to reduce the fl uid that Each of the product systems have been the framework of the general Chanel builds up under eyes, according to packaged in a different color. Hydra Therapy’s foundation strategy to provide every Mankin. “It will measurably reduce packaging is purple, Matte Therapy’s is green customer segment the perfect foun- the appearance of puffi ness and light- and Wrinkle Therapy’s is fuchsia. Therapy dation with exceptional quality,” said en the look of dark circles,” she said. products suited for all skin types are pack- Dagousset. “The new foundation and Nine foundation shades, each $65, aged in white, with silver tops. concealer provides antiaging benefi ts will be offered, as will three conceal- As well, Remède’s existing Alchemy line — without compromising coverage.” er shades, each $45. intended to address the fi rst signs of aging — has Elizabeth Mankin, senior vice While Chanel executives declined been repackaged in dark teal, with an updated president of Beauté Marketing for to discuss current door counts or sales formula expected by 2010. The fi ve stockkeeping Chanel, called the Lift Lumière range projections, industry sources estimated units range in price from $68 to $165. “a whole new category.” that Chanel’s color cosmetics stock- Remède products are available in about “It is a skin-caring makeup, which keeping units are available in about 850 41 doors, including Barneys New York, goes beyond standard antiaging ben- department and specialty store doors in Bluemercury, Bliss spas, Remède spas and efi ts,” said Mankin, noting that the the U.S., as well as chanel.com. ing Natalia Vodianova, will break in online at blissworld.com. launch’s sweet spot will likely be Sources estimated that together, February fashion, beauty and life- While the company declined to comment women in their 30s and up. “It is hy- the new foundation and concealer style magazines. Upwards of 500,000 on projected sales, industry sources estimat- drating and covering, intended for a would do about $14 million at retail samples are planned, as are deluxe ed that the new Therapy lines would gener- dryer skin type. It is also the fi rst time in their fi rst year on counter. miniatures, direct mail pieces and ate at least $5 million in retail sales volume we have simultaneously launched a National advertising, shot by standard samples, said Mankin. in their fi rst year on counter. foundation line and a concealer line.” Dominique Isserman and featur- — J.N. — J.N. WWD, FRIDAY, DECEMBER 19, 2008 7

WWD.COM Lancaster Sets Retinology Cream Mally Roncal in Web Site Relaunch UNLIKE MANY MAKEUP ARTISTS WHO product standpoint.” PARIS — Lancaster plans to deliver a portedly to improve radiance, and launched their businesses during the “She is a force of nature and a con- powerful wrinkle-busting punch with Lancaster’s signature RPF complex, Nineties in the big specialty stores, Mally summate expert in the fi eld with tre- Retinology, its go-to antiaging cream, said to combat free radicals. It was Roncal took her showbiz artistry straight mendous energy and ideas,” said Burke. which will make its debut in January. created in response to the needs of to the people three years ago, via the QVC “She has made QVC the focus of her Dubbed by the Coty Inc.-owned women aged 40-plus who are looking TV network. Now she is adding a new business and has always been there brand as a “total age solution,” the for an all-in-one antiaging treatment. dimension to that effort by relaunching when we needed her. We’re a growing treatment product is said to “While we have Lancaster her Web site, complete with its own video brand based on all the product develop- tackle wrinkles, plus the Ultimate, which is very programming. Acting like a mini televi- ment she’s done.” skin’s loss of fi rmness and high-end, we didn’t have a sion series, these videos feature product Although industry executives suppleness, dehydration and mainstream global antiaging demos, beauty advice and behind-the- wouldn’t comment, industry sources ex- dullness by conveying active product,” Pouey said, refer- scenes glimpses of Roncal’s busy life. It is pect the franchise to bring in more than retinol to cells using a new ring to the cream introduced intended to tap into today’s reality TV and $10 million in retail sales by yearend. delivery system, which was in 2004 priced at 240 euros, connect with the brand’s consumer base. “We plan to build the business and inspired by gene therapy. or $344 at current exchange, Roncal learned a great deal about grow in mid-double digits with up to a 30 Called the Intra-Cellular for a 50-ml. jar. In contrast, beauty technologies and products while percent increase in sales over the next System, it uses positively Retinology will sell for 125 working as a makeup artist on movie two years,” said Don Pettit, chief execu- charged vectors to carry ac- euros, or $179, per 50-ml. sets and fashion shows during the last 15 tive offi cer of Mally Beauty. tive retinol to skin cells. Once pump bottle. A 30-ml. ver- years. It became her mission to develop Launching this month on QVC and qvc. at its destination, active retin- sion will also be available. products for a daily beauty regimen. com, the company has expanded its 24-7 ol is said to activate protein The hermetically sealed “I’ve taken the makeup artist tricks professional franchise with a lip lining synthesis and so boost cell pump with a metallic fi nish I’ve used on set and translated it for system and blush products designed for activity and therefore dimin- was specifi cally designed to everyday women so they can feel long-wear use. Available in two ish the signs of aging. house the product’s cream that the products are easy to shades, the blush set con- “It acts like a GPS device, formula and protect its frag- use, while achieving great tains a cream primer which allows us to reach ile retinol molecule, accord- results,” said Roncal. formula and color the target directly,” said ing to company executives. Pricing in her collection pigment. When the Karen Pouey, Lancaster’s While Pouey declined to ranges from $12.50 for elements are com- vice president of marketing, discuss forecasts, industry eyeliner to $95 for the bined, they acti- of the delivery system, and sources estimate Retinology brush set. “It’s about vate one another added the brand pioneered will generate fi rst-year sales a high performance and have long- the use of retinol in cos- in the region of 15 million luxury where you can Mally lasting benefi ts. metics in 1978. “The active euros, or $21.5 million. apply the products in Roncal Inspired by a retinol reaches the cell with Retinology will bow in the morning and it technique she 100 percent effi ciency.” Europe in January 2009 and doesn’t come off until used on movie The cream, which Lan- Asia in September 2009. It sets by putting caster claims can make Lancaster’s Retinology. will hit shelves in the eyeliner on and skin appear 15 years U.S. in January 2010. setting it with pow- younger, also includes imperata cy- Kim Basinger is to front a single- and der, Roncal intro- lindrica hydroglycolic extract, meant double-page advertising campaign. duced the lip lining to moisturize skin; timiron splendid Samples will also be distributed. system. The combina- copper and micro rock crystals, pur- — Brid Costello tion of the two powder forms helps seal the liner to the lash line and is designed to boost the overall eyeliner color, Zirh’s Green Effort at Sephora said Roncal. While the blush re- tails for $35, the lip lining system ZIRH IS GOING GREEN, WITH A NEW men’s natural skin care line, we knew will be sold for $25. product range called Zirh Natural. the [Zirh] brand would be a great fi t With the relaunch of mal- The men’s grooming range, which based on their effi cacy, innovation and lybeauty.com, the Web site in- is set to launch exclusively at Sephora entrepreneurial spirit. The line will be cludes a blog and community in March, is a line of eight items the merchandised in men’s skin care and section, demo and branded com- company claims are free of parabens, will be the only natural men’s skin line ponents, in addition to the new- sulfates, pthalates, petrochemicals, offered at Sephora.” est arm, called Mally TV, which is fragrances and synthetic dyes. “Natural is a huge trend in the the video segment of Webisodes The lack of these ingredients, [personal care] category,” showcasing Roncal in her differ- according to Brian Robinson, Robinson added. “The ent roles. The performances ap- president of Zirh Holdings naturals category in parently are convincing enough LLC, gives the line its Sephora is their to have attracted TV producers. natural positioning, and fastest growing cat- Roncal said she has drawn the the idea is to bolster the egory, but there had interest of producers of a reality been a hole [for Items from TV show. natural products] Roncal’s line. Another avenue to generate in the men’s cat- new customers is Team Mally, in egory, and there is men’s a strong appetite for corner natural men’s skin I’ve taken the makeup artist tricks I’ve used on care.” The botanically de- “ rived collection, priced set and translated it for everyday women so they from $20 to $48 and sized be- tween 1.7 oz. and 4.2 oz., includes a can feel that the products are easy to use, while cleanser, scrub, moisturizer, undereye cream, shaving cream and gel, a post- achieving great results. shave balm and an antiaging night ” cream. Prices are about 20 percent — Mally Roncal higher than the rest of the Zirh assort- ment, due to the naturally derived for- you take it off at night.” which customers can sign up on the Web mulations, Robinson noted. Mally Beauty has been available site and become part of a plugged-in com- While he wouldn’t discuss sales, in- through QVC since March 2005 and now munity that shares information. There dustry sources estimate the line could the lineup, which includes more than 56 are also fi nancial rewards if friends pur- Some of the Zirh Natural items. do $1.5 million in retail sales during its items, is also sold at Henri Bendel and chase merchandise. fi rst year on counter. Amazon.com. The brand also is available Pettit remarked, “We see this as an- green product segment in the men’s “There has been incredible compe- on QVC in the U.K. Roncal was drawn to other way for customers to get involved prestige marketplace — especially tition in men’s,” said Robinson, “[But] QVC because it provided an opportunity and engaged with the brand.” at the LVMH Moët Hennessy Louis we’ve been in Sephora since 1998, and to build a community of Mally customers, Previously, the Web site provided in- Vuitton-owned retailer. this is going to give us a more impact- while at the same time teaching women formation only. This new stage allows Zirh Natural, packaged with a soft ful presence on shelf.” how to use her products effectively. the company to sell its products through green leaf and white motif (packaging So far there have been no discus- “I wanted to go on television to educate the Web site with an e-commerce link. design fi rm QSLD New World worked sions about expanding distribution of women and create excitement over make- Executives predict that the Web site with Zirh to create the clean-looking the line outside Sephora, which has up,” said Roncal. “These are professional business will become 20 percent of the products) is billed as the fi rst “all natu- roughly 230 doors in the U.S., or sepho- products so they might need that extra overall business by the end of the second ral skin care line for men.” ra.com, but international distribution, step, but it is worth it since they last.” year. Industry sources expect the site to Michael McGeever, vice president in which Zirh is found in 68 markets, is According to Allen Burke, QVC’s di- bring in more than $1 million in sales in of merchandising for Sephora, stated slated to begin in May. rector of beauty and cosmetics, Roncal’s its fi rst year. that, “When we saw the need for a — Matthew W. Evans business has a “clear-cut focus from a — Michelle Edgar 8 WWD, FRIDAY, DECEMBER 19, 2008 The Beauty Report Beauty’s New Motto: Let’s Make a Deal Continued from page one the mystic of luxury.” against discounts. Industry observer Allan Mottus suggested the discounts are the result of years of “Discounting is the promotional message of the season, regardless of the catego- skyrocketing prices in the beauty category. “As much as discounting seems distaste- ry,” said Wendy Liebmann, founder of WSL Strategic Retail. At a recent presenta- ful, it’s a necessary price correction,” he said, later adding, “Discounts are a smart tion, Liebmann declared that sale signs, hanging from store ceilings and plastered thing as long as they are not abused.” Mottus said he anticipates six to nine months across windows, are the de rigueur holiday decoration this season. “Retailers are of “pain in the industry” as the price correction takes place. discounting everything to get people into their stores.” Wachovia Capital Markets LLC analyst Jason Gere does not expect beauty fi rms From a survey of beauty retailers, the discounts are plentiful: Both The Body to lower prices going forward, but he anticipates both vendors and retailers to fund Shop and Bath & Body Works posted signs trumpeting 50 percent off select merchan- more promotions to clear out merchandise. “The holiday season is as advertised. It’s dise outside their doors; at Lord & Taylor, a Lancôme 17-piece cosmetics set valued very sluggish and likely worse than people anticipated,” said Gere. “[Discounting] is at $339 was available for $49.50 with any $36 purchase or more; Sephora marked a way that everyone is sharing the pain to move inventory.” down Stila’s color-cosmetics-and-handbag set to $50 from $115, and at Victoria’s While it is the retailer’s responsibility to absorb the point of sale reduction, there Secret Beauty, the price of the Ultimate Very Sexy Makeup case, containing 19 make- have been telltale indications of stores seeking markdown money, like in ready-to-wear. up items, was slashed to $90 from a $150 value price. Aggressive promotions have begun to show a slight shift in the average price of In Europe, holiday price warfare of seasons past was replaced by more subtle pro- beauty products, said Karen Grant, NPD’s global beauty industry analyst. She noted motions. For instance, at the Sephora fl agship in Paris, on the Avenue des Champs- that in the year to date period the average price rose 4 percent, but price growth Elysées, no major visible discounting was found. However, when asked whether dis- shrank to 3 percent in October and 2 percent in November. As a point of comparison, counts were available at Sephora, a saleswoman said adjustments could be made if in the prior-year period, prices grew 5 percent, with growth shrinking to 4 percent in someone were to show that a competitor has the same product at a lower price. She October and 3 percent in November. Grant noted the pattern is the same, but price added that in some other Sephora locations, such as in the Paris suburb of Bagnolet, growth has slowed this year. more widespread discounts on beauty items were being conducted. In London, Referring to a spate of promotions in prestige, Grant said, “Retailers are at least try- while many of the prestige department stores, such as Harrods, Harvey Nichols and ing to get as much volume as they can,” despite the margin erosion. “The challenge the Selfridges, had little promotional activity beyond traditional gift set displays, some beauty industry is seeing is the same challenge that the rest of the industries are see- players on Oxford Street, one of the city’s main shopping thoroughfares, were offering ing. The whole [retail] environment is offering deals,” she said, mentioning the Florida steep discounts. On Tuesday, health-and-beauty chain Boots, for instance, proposed car dealership that offered the buy-one-car, get-one-free deal. “If you’re not part of it, a 10 percent markdown on all fragrance gift sets, and in-store promotional material consumers may bypass you.” Grant also observed there’s been a change in the nature of the promotions. Referencing Estée Lauder’s online promotion over the Thanksgiving weekend that offered a $25 re- ward (redeemable in January) on purchases of $100 or more, Grant said, “It used to be gift-with-purchase or a free product. Now it’s cash.” Perhaps Connie Ruscio, vice president and general manager of Fragrances Elite International LLC, which distributes Versace fragrances, summed up best the urgency and gravity of the moment. “I’m taking advantage of traffi c in the store to move merchandise. We are doing it in selec- tive items, not across the board.” A number of fragrance industry execu- tives shied away from speaking for attribu- tion. But other industry fi gures spoke freely not for attribution. Some appeared uneasy about using this markdown tactic to soften the blows of a dreadful season, amid reports of December fragrance sales running 20 to 30 percent down. Accordingly, the sell-through rate of some of the gift sets this season were lagging behind last year’s pace when retailers proposed the markdowns. “There was no traffi c in the stores,” said one executive. “Or the traffi c that was in the stores was racing past the fragrance department to get to the 70 percent markdowns [in r-t-w].” Another senior industry executive echoed the sentiment that steep discounts in other areas of the store forced deals on the beauty fl oor. “Why you’re seeing more dramatic cuts is A crowd of shoppers hunt for bargains that the discounts in r-t-w have been so dra- at Macy’s in New York City. matic that they’ve made fragrance less impor-

PHOTO BY YANA PAKOVA/GETTY IMAGES PAKOVA/GETTY YANA PHOTO BY tant valuewise,” said the executive. “When you see $200 cashmere sweaters discounted to $75, you know you’re in trouble, because beauty has historically owned the price points Discounting is the promotional message of the between $45 and $75. When r-t-w gets marked down to our level, many of our custom- “season, regardless of the category. ers buy that instead of a gift set.” While beauty inventory levels were kept near normal levels through the holidays, — Wendy Liebmann,” WSL Strategic Retail the executive expects that there will be inventory cuts after the fi rst of the year. “I am anticipating that stores will be destocking in the spring, but not aggressively. If it’s too aggressive, it will be self-fulfi lling that sales will be down. However, we will advertised savings of up to 50 percent on selected fi ne fragrances. ship every week if we have to.” Industry executives are anxiously waiting to see if aggressive pricing this Yule Many executives made it clear that they marked down the sets that were not mov- will boost sales. If fragrance is any indication, the prospects look grim. In the pres- ing, not all of them across the board, and early indications of the effectiveness of the tige channel, the fragrance category has seen a drop-off in both dollar sales and gift set markdowns were decidedly mixed. One manufacturer saw some sales move- units, which are down 3 and 6 percent, respectively, for the year to date period ment this week, while another claimed the needle did not move at all. through October, according to The NPD Group. In the short run, these tactics may bring some relief, but the precedent worries some. Regardless of the damage to margins, the thinking is the merchandise has got to “We have established a protocol that will be very diffi cult to be up against next move. “As a manufacturer, we really don’t care or control retail prices,” said Dan year,” said one manufacturer. “We are going to have to reevaluate the number of sets Brestle, vice chairman and president of the Estée Lauder Cos. Inc. North America. we put in the stores,” the executive said, noting that “the stores have come to rely on “Once they buy the goods, our retail partners can do what they like with them.” that business.” Some brands reportedly do as much as 50 to 60 percent of their annual Brestle added one-time discounts don’t have to affect fragrance’s luxury position- department store business in sets, while others try to hold it down below 30 percent. ing. “If this discounting becomes a way of business, yes, it will have a negative affect The sell-through is usually high, apparently because consumers see the sets as a on the business,” he said. “But if it is a one-time thing these holidays, no. I think bargain. The typical cost of goods on a gift or value set can hit 50 to 55 percent of the everyone realizes that this year is an aberration.” retail price, compared with 15 to 30 percent for a regular-priced item. Now, there is a But what happens after Christmas trees are dragged to the curb and the last 20 percent discount on top of that. For instance, MAC Cosmetics offered its holiday kits Hanukkah candle is lit? for 25 percent off. Liebmann said the barrage of sale signs may prompt shoppers to reevaluate the One immediate concern is that the intrinsic value of fragrance will be lost in the actual value of products they once bought at luxury prices, and to ask, “Are those melee as retailers cut r-t-w pricing to the bone in a desperate attempt to clean out prices justifi ed?” inventories. Another worry is that fragrances will be turned into a discount category. She added, “It’s going to be a major challenge for high-end retailers to re-create “It is a real danger,” said another executive. “After the past decade of stagnation, WWD, FRIDAY, DECEMBER 19, 2008 9

WWD.COM we’ve held the best real estate in the store while maintaining full price. If Calvin Klein and Kenneth Cole brands. “We’re feeling we become a sale item, we will not maintain the space.” pretty good in view of the environment.” The executive said the only hope is that a 20 percent markdown will not Gary Borofsky, senior vice president of cosmetics quicken the consumer’s pulse and this season’s gift set markdowns will fail. and fragrances for Macy’s Central, suggested the indus- “If it is perceived by the retailers that ‘We tried this and it didn’t work,’ then try ought to tout the value of its offerings, rather than it will be the last time we’ll see it. It didn’t appear to help last week.” discount gift sets further. He concluded, “I hope it is a short-term situation. But I’m not optimistic.” “I believe the industry as a whole needs to do a better Panic may be forcing retailers to pull more promotional levers. job of calling out the values we offer to the customer now Dennis Keogh, senior vice president of marketing for Coty Prestige, said, and throughout the year,” said Borofsky. “In many cases, “The [fragrance] category is down and the [emphasis is] to move through the value set price is already 20 to 50 percent off what inventory — people don’t want to take those returns, and Christmas sets are the customer would pay if the items were purchased in- able to be returned.” He continued, “We’re seeing a lot of price slashing that dividually — however [retailers and manufacturers] don’t none of us have ever seen before from the high-end like Neiman Marcus and scream that value savings.” Saks Fifth Avenue and department stores,” he added. “Yes, it is affecting the He continued, “Offering customers great values and fragrance category dramatically — we’ve never seen anything like this. then discounting on top of that does nothing but con- “If the normal discount was 20 percent and then dropped another 20 fuse the customer. We are not getting price resistance percent,” said Keogh, “[retailers] are saying to customers ‘40 percent on high-demand giftable scents, such as the Dolce & off.’ These are very aggressive statements.” Gabbana, Juicy Couture, Estée Lauder Sensuous, Ed Discounting has also prompted shuffl ing of fragrance ranking adding Hardy, Harajuku, Chanel and Dior. So if the product is — like some scents that were ranked in the high teens moving right and the customer sees the price-value relation- to a low-teens position or even a number-12 ranking. ship, discounting gift sets even further should never be While a number of vendors have agreed to take major an issue.” markdowns in sets, many at 25 percent, according to Keogh, He added, “We did not follow the move some re- he said that Coty is not. In a sign of Coty’s leveraging power tailers took to discount cosmetics and fragrances this with so many scents on the market, “Some stores are taking the month. But “what we have done is reprice some slower- markdowns on their own [refl ecting a difference between the selling product where we have seen consumer price manufacturer’s suggested price and the in-store price], but not Inside Bath & resistance.” However, he added, this is a strategy the charging us back for it because we have not agreed to take the beauty Body Works. retailer has taken in years past, and would do so any markdown expense.” up time of the year moving forward, holidays or not. He said Coty Prestige is tracking at an 85 percent sell-through rate Another beauty executive predicted that the beauty business will end the holi- and could hit 90 percent. “We’re where we want to be. days fl at to minus one. “I’ve seen discounting sporadically, but nothing to the depth “The battle is to not allow a slowdown in turns and to manage slow sell-through, it is today,” said the executive. “The economic meltdown happened so quickly, and which [the industry is trying to avoid].” we’re all trying to deal with it. If these economic conditions had happened in May, Some of Coty Prestige’s best performers include Harajuku Lovers — “That’s been we would have lowered the prices and no one would know that we’d done it. But that far more successful than we’d hoped,” — said Keogh, as well as the Marc Jacobs, didn’t happen, and we’ve repriced — kicking and screaming.” Mass Beauty Aisles Lack Holiday Sizzle by Design By Faye Brookman ues to be stellar, and lip is the softest. Nail is taking measures customer traffi c, said total U.S. foot traffi c some lumps…due to formula changes,” he said, add- fell almost 18 percent for the week ended Dec. 13 com- IT’S NOT BEGINNING TO LOOK A LOT LIKE ing consumers are trading down to midlevel and bud- pared with a year earlier, while its estimate for retail Christmas in the nation’s mass market stores. Store get brands. “I suspect that with the current economy, sales declined 0.3 percent in the same period. checks throughout areas in New York and New Jersey people have been conditioned to buy on sale. Every The good news, however, is that many shoppers found that many retailers gave up on decking the aisles weekend there is a circular promoting sales, and they didn’t even start yet. Mass-market doors and fra- in the beauty department. shop the sales.” grance sets are traditionally last-minute purchases, Manufacturers and retailers said privately that Since the mass market buys so far in advance, with so decorations or not, there could be much more some of the lack of sizzle is by design since chains plans nailed down as early as last February, manufac- business to come. The National Retail Federation bought less expecting a gloomy Yule. The goal, several turers could not enact quick markdown strategies to said Tuesday the average consumer has completed said off the record, was to eliminate inventories in attract more shoppers. However, a great deal of buy- much less holiday shopping by this point in the sea- hopes of starting 2009 clean. Reduced holiday sell-in one-get-one-free offers and discounts were built into son than in previous years. ShopperTrak said the was not unusual this year. The downside to the down- fi nal weekend before Christmas typically accounts scaling, however, is a lack of a holiday feel in many for approximately 11.5 percent of holiday sales. And stores, shoppers told WWD. that is what companies such as Markwins bank on. In fact, a survey from BDO Seidman found that “While it is well-documented that the holiday season one-third of chief marketing offi cers at large U.S. re- is off to a slower start, surveys suggesting 8 to 10 per- tail companies said they were hoping to bring costs cent of shoppers are behind shopping schedule due in line with lowered sales expectations and that to the few shopping days between Thanksgiving and they were working with smaller budgets. A Target in Christmas. Additionally, this has been compounded PHOTOS BY STEVE EICHNER PHOTOS BY Piscataway, N.J., for example, had very little as far as by procrastinated shopping as consumers are wait- holiday blockbuster color and fragrance offerings. The ing for the best deals to be published at retail. While only end cap of color kits was Markwins’ Glam Girl, slower sales are concerning to retail, this does play aimed at tweens and priced from $4.99 to $14.99. Very favorably into Markwins’ value-oriented gift sets,” little emphasis was placed on promoting holiday in the said Matt Allen, senior vice president of sales. beauty department. “Markwins has very strong gift presentations in all The same appeared true at a Rite Aid near retail, and consumers are responding particularly Princeton, N.J., where gift sets are currently on dis- well to the $10 and under price points.” play, but the offerings are pared down versus walls and Lyn Kirby, president and chief executive offi cer of walls of goods seen in past years. A Whole Body store Ulta Inc., the Romeoville, Ill.-based chain of 300-plus in the Chelsea neighborhood of Manhattan was light beauty stores, said that for the holiday season the com- on Christmas decor, but endcaps in the bath, body and pany has continued promotional initiatives that began hair section of the store presented customers with dis- in the third quarter. counted gift sets options. Items by Burt’s Bees, Pangea, “We have invested modestly more margin in advertis- Avalon, Alba, Kiss My Face and even Dr. Haushka were ing,” said Kirby. In particular, the chain has expanded on display, packaged in gift sets alongside a sign re- distribution of its promotional brochure, which con- vealing the sale price and the savings customers would tains cost-saving coupons. A typical offer is $3.50 off the realize with purchase. purchase of $10 or more. Additionally, Ulta is working A Walgreens in Somerville, N.J., was one of the only more closely with vendor partners to provide incen- doors visited that did have a massive display of fra- tive promotions such as buy-one-get-one-free offers. grances ranging from Fantasy to L’air du Temps. Holiday displays in Customers can also fi nd better deals on Ulta’s private- Walgreens also offered its own brand of bath prod- mass stores were label brands. ucts priced at two for $20. Going after the male market, mostly limited to While the stores are featuring numerous gift-with- the chain also featured Axe gift sets. One end cap was fragrance gift sets. purchase offers in its fragrance department, such as stocked with Color Workshop color kits, but another of- free pajamas with a $30 purchase, those promotions fered many of the hot “As Seen on TV” items such as are similar to last year, said Kirby. the Telebrands PedEgg. Walgreens’ Catherine Lindner, most plans. And mass marketers can follow the upscale Wallner added that a sea change has occurred in divisional vice president of marketing development, formula by marketing well-priced blockbusters of their consumers’ buying patterns — one that benefi ts the said during a tour of a new Manhattan store that the own. CVS, for example, offers a beauty tote bag fi lled likes of Wal-Mart, which offers daily deep discounts, chain has many interesting exclusives she thinks will with products from its Essence of Beauty range, priced versus retailers that don’t, the likes of which may im- help shoppers seek its stores for the holidays. Among at $14.99, but valued at $80. pact the future. those are a private label bath and body line called Even massive discounting has failed to bring out “The concern over fourth-quarter sales are some- Details, products in The Face Shop as well as the line stingy shoppers. The number of consumers heading what unique and will impact decisions for 2009 and extensions from Yes to Carrots. to U.S. stores dropped sharply the second week in possibly longer. Now, every retailer just wants to get Bob Wallner, vice president of sales for Milani, said December despite steep price cuts and limited time- through the quarter and the next six months. Everybody what’s selling in the beauty aisle in the past month only deals for the holidays, according to data released just wants to reduce inventory levels,” he said. is in line with sales trends for the year. “Eye contin- by ShopperTrak on Wednesday. ShopperTrak, which — With contributions from Andrea Nagel 10 WWD, FRIDAY, DECEMBER 19, 2008

The Beauty Report WWD.COM Banks Is Beauty Firm’s Newest Face SNIPPETS L’ORÉAL PARIS HAS SIGNED ACTRESS ELIZABETH BANKS AS ITS TOO MOVE: Color cosmetics brand Too Faced “So far, it’s been brilliantly received with latest spokesperson. has named Lynda Berkowitz as president of hundreds of people fancying a different kind Banks will begin appearing in TV and print ads for the cosmetics giant begin- the fi rm, which was founded 10 years ago of fl utter and registering to be Feelunique.com ning in February. The multiyear deal is estimated to be worth about $1 million a by Jerrod Blandino and Jeremy Johnson. In winkers.” While the fi rm has yet to decide how year, according to industry sources. her new role, Berkowitz will oversee what many models it will employ, it had received Elizabeth Banks Banks appeared in three movies the company calls “accelerated strategic 500 applications by Wednesday evening, this year, “W.”, “Zach and Miri Make planning” meant to grow the fi rm. Berkowitz, a according to a company spokeswoman. a Porno” and “Role Models.” 15-year veteran of the cosmetics industry, was In a statement, Banks said, “What most recently at Perricone MD Cosmeceuticals BEAUTY BATTLE: A new fi lm to air nationally impresses me most about L’Oréal is and, prior to that, worked at Bobbi Brown in March on PBS will report on the rivalry the company’s commitment to em- Cosmetics and Riviera Concepts. between two of the most infl uential powering women. L’Oréal wants beauty pioneers in American history: women everywhere to not only take BEAUTY 90210: The Montage Beverly Hills, Helena Rubinstein and Elizabeth Arden. charge of their beauty, but to also the ritzy city’s newest luxury hotel, has A presentation of South Carolina ETV, take control of their health and opened with a namesake 20,000-square- “The Powder and the Glory” is scheduled well being.” foot, two-story spa and a 1,800-square- to air Monday, March 23, at 10 p.m. and Karen T. Fondu, president of foot Kim Vo salon. Designed by the HKS documents the two women’s competition and the L’Oréal Paris division of L’Oréal Hill Glazier Studio, the 17-room spa is how their companies helped defi ne the beauty USA, also commented on the new heavily infl uenced by Spanish Revival and industry. The fi lm is based on the 2004 book deal. “Elizabeth’s talent and beauty Moorish architecture. At its center is a by Lindy Woodhead, “War Paint: Madame is matched by her intelligence and coed relaxation area with a mineral pool Helena Rubinstein and Miss Elizabeth Arden: approachability. She has a natural enveloped by colorful tile mosaics. While Their Lives, Their Times, Their Rivalry.” charm and an incredible ability to the spa is owned and operated by the captivate an audience,” said Fondu. hotel, the 11-station Kim Vo salon is a joint SECRETS REVEALED: Hollywood Secrets has Banks joins other L’Oréal Paris venture between color specialist Vo and the launched with television infomercials and spokeswomen Beyoncé Knowles, Montage. Vo, who moved his outpost from is slated to premiere on HSN either next Diane Keaton and Eva Longoria the Sonya Dakar Skin Clinic to the Montage, month or in February. The $89.95 Hollywood Parker. believes that the Montage salon will rival his Secrets infomercial offer contains the brand’s

PHOTO BY JON FURNISS/WIREIMAGE PHOTO BY — Andrea Nagel Las Vegas location at the MGM Mirage in signature 5 Minute Eye Transformation terms of performance. Color services start at product, as well as a facial cleanser, hand $200 and cuts start at $150. and body moisturizer, and two face creams. The principal ingredient in Hollywood DOUBLE DUTY: Kérastase Paris is launching Secrets, which is owned by Los Angeles- Murad Targets Sleep-Deprived Beauties Double Force Controle Ultime, a hair spray based Zen United, is the peptide argireline, that is formulated to provide fi rm hold which is released into the skin via a patented By Rachel Brown and UV protection, Double Force looks delivery system called QuSomes. Zen United to complement the original Double Force licenses QuSomes from Los Angeles-based SURE, EVERYONE’S HEARD OF GETTING BEAUTY SLEEP, BUT WHAT hair spray, which is formulated to provide company Migami. Pittsburg, Calif.-based about getting beauty products to improve sleep? a working, fl exible hold. Ultime contains BioZone Laboratories Inc. invented QuSomes, Murad, the El Segundo, Calif.-based skin care brand that’s helped bring in- ceramide, which the company said has and the company’s co-founder and executive gredients such as pomegranate to consumers’ attention, is carving out a niche cementlike properties that strengthen vice president, Brian Keller, appears in for beauty solutions to the nightmare of no sleep. A duo of products launching weakened hair fi bers and seal the cuticle. Hollywood Secrets infomercials along with next month, Sleep Reform Serum at $97 for 1 oz. and Sleep Reform Dietary The water-free formula also allows for faster actress Stefanie Powers. QuSomes are also in Supplements at $49.50 for 60 tablets, is Murad’s introduction to the snooze busi- drying time and control against humidity. Aquafi na Skincare and Space NK products. ness, which could eventually expand to an array of recommended sleep rem- Ultime, which sells for $36, is sold at Marcus Englefi eld, a partner at Zen United, edies within Murad’s skin care portfolio. Kérastase salons nationwide. said Hollywood Secrets’ demographic target “In my practice, it seemed like a major problem that people have is with is women 40 to 65 years old. He sleep,” said Howard Murad, a dermatologist who founded his namesake compa- Karen Fondu expects to sell 225,000 units of ny in 1989 and cited a statistic that roughly three-quarters of Americans report and Women Hollywood Secrets in the product’s insuffi cient rest. “I think this is going to be a major hit because it is something of Worth fi rst year on the market. that is relatively obvious.” National Murad has been on a growth jag despite the poor economy. Overall, the com- Honoree PERFUMER UP: Perfumania Holdings pany has experienced 23 consecutive quarters of double-digit increases and, Cindy Kerr. Inc. reported in a regulatory fi ling as of November, was on pace for a 20 percent jump in 2008 over the prior year. Wednesday evening that sales during Internationally, Murad’s sales are up 50 percent over 2007, and there are ex- the quarter ended Nov. 1 jumped 36.2 pectations that 50 percent of the company’s business could come from abroad percent to $126.4 million, from $92.8 in fi ve years. million in the same period a year ago. The Sleep Reform products rely upon what Murad has dubbed a Repair The fi rm, which was formerly known Enhancing Matrix with Gama-aminobyteric Acid (GABA), Methyl sulfon- as E Com and merged in August with

methane (MSM) and vitamin C intended to amplify the depth and duration of JON SIMMONS PHOTO BY Model Reorg, also said gross profi ts sleep. Melatonin in the products aims to aid the skin’s sleep cycle to promote almost doubled to $44.4 million from its ability to mend itself, while Oligopeptide-1 is meant to fi rm the skin, and WORTH IT: L’Oréal Paris held its third annual $23.1 million a year ago, a 92.4 percent Tocopheryl Acetate encourages healing. The serum is supposed to be applied Women of Worth program on Dec. 10 to honor increase. Year to date, sales reached $251.3 before the user goes to bed. 10 women for their volunteer efforts. Each million, up 11.6 percent from $225.2 million “What melatonin does is it allows your cells to sleep. There woman received $5,000 from L’Oréal Paris in the nine-month period last year. are actually receptor sites for melatonin in your skin. As we for her charitable organization, plus a $5,000 get older, we don’t produce the melatonin,” explained Murad. matching donation made in her name to the AILING ALENA: Alena LLC, marketer of “GABA is probably the ultimate neurotransmitter that calms Ovarian Cancer Research Fund, the 11-year- the skin care brand Hydroderm, is going you down. We also have MSM that allows things to penetrate old charitable partner of L’Oréal Paris. Cindy through a rough patch. The Culver City, and is a sulfur donor. Sulfur is a key element that our bodies Kerr of ConKerr Cancer, an organization she Calif.-based company fi led for Chapter 11 are often missing.” founded to help children with cancer after last week after accumulating liabilities in The Sleep Reform products will Murad’s Sleep Reform she lost her son to the disease, was named the range of $10 million to $50 million. be sold in roughly 1,500 doors by the items. the Women of Worth National Honoree and The same week, the company released a second quarter of 2009, including received an additional $25,000 for her cause statement retracting breach-of-contract Sephora and Ulta. Murad estimated from L’Oréal Paris. Held at the CNN Inspire accusations against actress Teri Hatcher. that they could generate between $2 Summit at the Time Warner Center in New Alena had claimed Hatcher touted million and $4 million in fi rst-year York City, the event also featured comedian cosmetics brand City Cosmetics while under sales, depending upon consumers’ Whoopi Goldberg as a guest speaker, as well a $2.8 million contract with Hydroderm. willingness to try out products in as playwright and activist Eve Ensler. Alena has been a legal target, as well. beauty stores that address what many In October, cosmetics formulator Irvine, may judge the province of physicians. BLINK ADS: Online beauty retailer Feelunique. Calif.-based JRX Biotechnology launched “There has to be a middle ground, com launched a blink-and-you’ll-miss-it a patent infringement lawsuit against a place between the doctor’s offi ce advertising campaign Wednesday. The e-tailer Hydroderm. JRX contends on its Web site and what is now considered a salon or is turning eyelids into billboards by recruiting that Hydroderm incorporates its patented beauty place, where things that aver- models who will have their peepers branded DermX Megasphere Delivery System and age people who aren’t really sick and with the site’s logo starting next week. The that Hydroderm products have notched don’t have sleep apnea go and get some human advertising spaces will each earn 10 cumulative retail sales in excess of $100 benefi t,” said Murad. “Frankly, if you pence, or about 15 cents at current exchange, million. Alena’s chief executive offi cer, Brett look at what we have done in the past, per wink, up to a maximum of 100 pounds, or Saevitzon, was the co-founder and former that is exactly where most of the prod- $155. “It’s a genuine marketing fi rst, which president of retail chain PureBeauty, which ucts are. They are not quite beauty, al- encourages people to spread a feel-good itself fi led for Chapter 11 as it was being though I believe beauty and health are winking moment and earn some much- sold to Cameron Capital Corp. for about synonymous, but it is somewhere in needed extra income in the process,” stated $10 million in 2006. Regis Corp. acquired this [beauty to health] range.” Amy Rebours, the site’s marketing manager. PureBeauty earlier this year. TRACKING BEAUTY AROUND THE GLOBE

FEBRUARY SPOTLIGHT ON TECHNOLOGY WORLDWIDE WATCH: EASTERN EUROPE PHOTOS BY DELPHINE ACHARD, GEORGE CHINSEE, THOMAS IANNACCONE AND PASHA ANTONOV A CLOSER LOOK: COLOR COSMETICS

BONUS DISTRIBUTION: PCPC AND NY FASHION WEEK

JANUARY 16 CLOSE: FEBRUARY 13 ISSUE DATE:

For more information on advertising, contact Christine Guilfoyle, publisher, at 212-630-4737, or your WWD representative. 12 WWD, FRIDAY, DECEMBER 19, 2008 WWD.COM Financial For full daily stock changes, see WWD.com. General Growth Gets Loan Extensions Stocks Dip on GE Revision By Evan Clark ly nothing to announce. We hope to be By Arnold J. Karr remains one of the world’s most profi table able to report some transactions prior and highly rated fi nancial institutions.” GENERAL GROWTH PROPERTIES INC. to yearend.” RETAIL SHARES ESCAPED THE WORST However, he said, “fundamentals- secured a temporary reprieve from its Affi liates of the fi rm retained DTZ of another late-day swoon on Wall Street based earnings and cash fl ow could de- lenders Thursday, pushing back an over- Rockwood LLC to sell its owner’s inter- on Thursday but couldn’t get away un- cline suffi ciently during the next two due $900 million mortgage payment to est in Festival Marketplace Portfolio, scathed after investors pulled back fol- years to warrant a downgrade.” February. But the cash-deprived company according to the property adviser’s Web lowing Standard & Poor’s reduction of GE’s commitment to the fi nancial unit is now looking for buyers for New York’s site Thursday. The company declined General Electric Co.’s outlook to “nega- has been demonstrated in recent months South Street Seaport and other mixed-use to comment. tive” from “stable.” by the infusion of $5 billion in equity into properties in Boston and Baltimore. A spokesman for General Growth After spending most of the day in posi- GECC and the reduction of GECC’s divi- The fi nancial breathing room pushed said, “South Street Seaport, Faneuil tive territory, the Standard & Poor’s Retail dend payout to GE to 10 percent of net up General Growth’s shares to as much Hall [in Boston] and Harborplace [in Index dropped 1.4 percent to 286.61. It earnings from 40 percent. as $2 Thursday, but the stock closed with Baltimore] are among a group of prop- fared better than the Dow Jones Industrial The status of GECC is critical to the ap- a 1.9 percent, or 3 cent, gain at $1.61. erties for which General Growth is seek- Average, which dropped 2.5 percent to parel and retail industries because it pro- Shares of the fi rm have traded as high ing partners, investors or buyers.” 8,604.99, and the S&P 500, down 2.1 per- vides credit to consumers as well as retail- as $44.23 over the last year. The three develop- cent to 885.28. Both retreated quickly in ers and wholesalers. It provided fi nancing General Growth signed ments encompass a total the late afternoon after S&P lowered its to Goody’s Family Clothing Inc. when the the forbearance and of 1.2 million square outlooks on both General Electric Co. and retailer entered bankruptcy in June and wavier agreement with feet, including office its General Electric Capital Corp. (GECC) again when the fi rm exited Chapter 11 in its syndicate of lenders space, with retail sales unit, based principally on concerns about October. Goody’s is reportedly running low late Wednesday, extend- per square foot of $593. GECC’s effect on GE’s gold-standard on cash yet again. GE also extended fi nanc- ing the deadline for its WWD The South Street “AAA” long-term credit rating. ing to Steve & Barry’s prior to that compa- mortgage payments to Seaport is in a his- “GECC will account for about a third of ny’s bankruptcy and subsequent liquida- Feb. 12 after days of toric area of lower GE’s earnings in 2009 — or less if worse- tion and to the troubled Finlay Enterprises negotiations. The debt Manhattan that had its than-expected credit losses further re- to help with the 2007 acquisition of Bailey came due on Dec. 12 and INDEX commercial heyday in duce GECC’s earnings,” wrote S&P ana- Banks & Biddle. Lord & Taylor and is tied to the Fashion the 1850s. The existing lyst Robert Schulz. “Even with its current Gottschalks, among many others, also have Show and Palazzo prop- mixed-use project was stand-alone credit profi le of ‘A-plus,’ GECC credit arrangements with the fi rm. erties in Las Vegas, COMPOSITE developed in the 1980s. which the company put It is owned by the city on the block in October. 736.06 and General Growth is General Growth also en- the leaseholder. The 10 BEST PERFORMERS tered into a deal extend- Seaport houses units ing its 2006 senior credit from Victoria’s Secret, DAILY COMPANIES P/E VOLUME AMT agreement until Jan. 30. Coach, Abercrombie The Chicago-based & Fitch, Gap, J. Crew HIGH LOW LAST %CHANGE developer took on and Guess, as well as huge debt to build its As Seen On TV and portfolio of more than Brookstone, among 0.55 0.55 Birks & Mayors (BMJ) 0.4 1500 0.55 +27.91 200 malls but couldn’t others. keep up with payments Last week, General 7.33 5.72 G-III Apparel (GIII) 5.2 625107 7.03 +24.87 as the economy weak- -2.03 Growth managed to get ened and credit condi- about $896 million in tions tightened. mortgage loans, which 0.52 0.42 Tarrant Apparel (TAGS) - 200 0.52 +11.49 Bankruptcy was a pos- it planned to use to re- sibility had the lenders not agreed to tire a $58 million bond that came due, 0.41 0.34 Joe’s Jeans (JOEZ) 3.7 69434 0.41 +10.81 the extension. and about $814 million in mortgages “We need to generate billions to de- maturing next year. The maturities on 9.97 7.98 Destination Maternity (DEST) - 137172 8.33 +10.55 leverage the company,” Adam Metz, the new fi nancing range from fi ve to interim chief executive officer, said seven years. 2.25 2.02 Cache (CACH) 10.5 61292 2.19 +9.50 on a conference call with analysts last In all, the company has more than $3 month. “Sales transactions are an im- billion in debt maturing next year, and 7.97 6.82 Oxford (OXM) 6.9 416882 7.29 +6.89 portant part of our plan. Unfortunately, revenues in its last four quarters totaled these transactions take time and, until $3.39 billion. the deals are completed, there is real- DTZ Rockwood declined to comment. 1.98 1.78 Charming Shoppes (CHRS) - 1397140 1.90 +6.74 5.94 5.40 Ann Taylor (ANN) 8.9 1916555 5.88 +6.52 Analysts: Snow Could Bury Holiday Sales 15.60 14.39 Fossil (FOSL) 7.0 1023898 15.41 +5.62 By Alexandra Steigrad tailer and negotiate the price of shoes,” Drbul quipped. NEW YORK — Already struggling for Overall holiday sales are expected to holiday sales, retailers could be dealt decline 1.5 percent versus last year be- 10 WORST PERFORMERS a major setback on the final weekend cause of an economic environment that before Christmas because of wintry Barclays’ analysts are comparing with the weather. recession of the early Nineties, he said. DAILY COMPANIES P/E VOLUME AMT A storm barreling its way from the “We think it could take eight to 10 Midwest might dump as much as 8 inch- quarters for earnings to turn the cor- HIGH LOW LAST %CHANGE es of snow and slush on New York and ner,” said specialty retail analyst Jeff other parts of the Northeast, creating Black, who projected the downturn another downward pull on purchases, would last until 2010. “We just don’t see 3.49 2.95 Jaclyn (JCLY) - 245 3.49 -30.06 Barclays Capital analysts said Thursday a snapback.” at a retail roundtable here. Retailers like Abercrombie & Fitch 0.31 0.25 Nitches (NICH) - 12145 0.25 -23.99 “If this happens, it will be devastat- Co., Ross Stores Inc. and The TJX Cos. ing to their sales expectations,” broad- Inc. are well positioned to improve their 0.70 0.56 Bluefl y (BFLY) - 13570 0.57 -19.71 lines retail analyst Robert Drbul said. balance sheets with cost-cutting initia- The 10 days before Christmas ac- tives, but Black was negative about the 2.15 1.76 New York & Co. (NWY) 8.7 351573 1.78 -15.24 count for about 25 percent of holiday prospects of Gap Inc., Aéropostale Inc., sales, Drbul said, with the fi ve most prof- J. Crew Group Inc. and Urban Outfi tters itable days starting the Saturday before Inc., saying they have yet to lower inven- 0.40 0.39 Phoenix Footwear (PXG) - 11864 0.39 -13.33 the holiday. The weather is a frequent tory and costs signifi cantly. scapegoat for weak sales, but this year While there are some bright spots 0.15 0.12 Hartmarx (HTMX) - 112599 0.13 -13.33 conditions could exact a harsh toll. in specialty retail, Black said that, as “Each day going into Christmas is the downturn deepens, the misses’ 31.5 26.59 Taubman (TCO) 45.7 1975092 26.83 -12.46 more important than the prior day,” apparel sector may be susceptible to Drbul said. “If retailers miss these consolidation. 6.73 5.64 Penn Real Estate (PEI) - 1705841 5.65 -12.13 sales, they will be forced to mark down Store growth for mature women’s re- even more.” tailers contracted 4.7 percent last year 4.95 4.15 Developers Diversifi ed (DDR) 4.7 5011054 4.19 -11.97 With retailers eager to clear holiday and net income shrank 9.5 percent, ac- merchandise after a season characterized cording to Barclays. Misses’ retailers by steep markdowns and soft margins, such as Coldwater Creek Inc., which 0.26 0.21 Charles & Colvard (CTHR) - 21503 0.225 -10.00 Drbul said he has already seen “real- began 2008 well, and rival Chico’s FAS time” adjustments to slumping sales. Inc., which is carrying too much in- * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the “There are anecdotal stories of ne- ventory, need “very aggressive sales,” London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs gotiations. You can go into a luxury re- Black said. and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. WWD, FRIDAY, DECEMBER 19, 2008 13 WWD.COM Media/Advertising MEMO PAD Hilfi ger Returning to Bryant Park SCHIEK STEPS DOWN: Lisa Schiek, Tom Ford’s global communications director and his longest- TOMMY HILFIGER HAS COMMITTED TO THE NEW YORK FASHION WEEK standing employee, on Thursday revealed her decision to leave the company. Her last day will tents for February, even as other designers mull over whether to show in be at the end of January or in early February, and her replacement will be named in the new Bryant Park. year. “This may or may not come as a surprise, as I have been inching and talking about this for This appears to be a case of seized opportunity by the designer, who has taken some time,” said Schiek. “I told Tom mid-October of my intentions, and he asked that I hold off the 10 a.m. slot on Feb. 19 that belonged to Vera Wang. She decided this week to saying anything so that they can sort out the communications structure.” withdraw from the tents, seeking to convey a more intimate mood in a smaller In October, North American communications director Shirin von Wulffen resigned her post. show that is “more appropriate for these times,” she said. Wang is moving the show Both Schiek and von Wulffen had worked with Ford and Domenico De Sole, chairman of Tom to her new Mercer Street store. Ford International, in their Gucci years. Schiek’s professional relationship with them went back Hilfi ger will be back in Bryant Park for the fi rst time in three years. Not one to 18 years. have low-key gatherings, he opted to present his last two collections at Lincoln Center Schiek joined Gucci in 1990 as the public relations and special events director for on Manhattan’s Upper West Side. Eva Mendes, Hilary Swank, Pharrell Williams and Gucci America, and in 1999 moved to London as communications director for Gucci Group, Julianne Moore are among the celebrities who have caught recent shows. which created a model for the modern luxury group. She was instrumental in the successful In the main tent, Hilfi ger can seat as many as 1,200 people. “The past few seasons relaunches of the other brands under the Gucci Group umbrella, including Bottega Veneta, Yves have been signifi cant for us as a brand as we’ve reestablished our runway presence in Saint Laurent, Boucheron, Bedat & Co., Stella McCartney and Alexander McQueen. iconic off-site venues,” said Avery Baker, executive vice president of global marketing Schiek followed Ford and De Sole out the door in April 2004, after the pair’s contract talks and communications at Tommy Hilfi ger. “It is now time for us to return to the tents at with PPR failed over disagreements about creative control. Bryant Park. There are tremendous economic and logistical benefi ts to showing in the “I have only the greatest respect and admiration for Tom and Domenico and have learned tents, and we have always appreciated and admired [producer] IMG Fashion’s dedica- so much from the two of them. I am genuinely proud of what was accomplished these past 18 tion to designers. At times like this, it is especially important for those in the fashion years and wish them and the entire team at Tom Ford every success,” she said, adding, “This is community to support each other.” the right time for me to move on.” — Jean Schneides Tommy Hilfi ger is said to be in the midst of formulating a rebranding campaign with Radical Media. A company spokesman declined comment. ALL BUSINESS: Gawker Media — the blog network that over the years has evolved from pirate Expressing her delight with the Bryant Park decision, Fern Mallis, senior vice ship to Web establishment — has been responding to the predicted online advertising recession president of IMG Fashion, said Hilfi ger “is getting behind the label and the busi- with a series of consolidations and cutbacks that its owner and founder, Nick Denton, argues will ness in a big way. It feels like it’s going to be a Tommy moment again.” gird the apparently profi table company for whatever is ahead. In other fashion week developments, Mallis said IMG Fashion is trying to set up a The result is a raft of rumors that Denton has been “led around by the nose by the business site for presentations “in or close” to Bryant Park. “That seems to be what many in the side,” including vice president for sales and marketing Chris Batty. On Thursday, Denton industry are looking for now,” she said. “Numbers are not an issue with presentations. responded to the rumors by saying he’d been a pragmatist all along. They’re very user-friendly. People can go in and walk through them quickly.” “We’ve closed or sold titles for nearly as long as we’ve been opening them,” he said, adding — Rosemary Feitelberg he already had laid out the need for “brutal” changes to get the business “into good shape.” He conceded, “There is clearly a shift in priority — we give sites less time to prove themselves, and we’ve only launched one new title this year. And we got out of unprofi table categories such as politics, [Silicon] Valley trade news and Verizon bashing.” Valleywag, the Silicon Valley gossip blog that never quite took off, was recently folded into Brands’ New Products for Holiday Gawker. “Verizon bashing” refers to The Consumerist, a very well-traffi cked consumer advocacy site Denton put on the block after Batty and other executives had been “gunning for” its sale, By Alessandra Ilari Denton said. Mediabistro’s FishbowlNY reported Tuesday that Consumer Reports was among the interested parties. MILAN — A string of luxury Other changes include a suspension of page view bonuses for editorial staff (and, Denton and designer brands are said, an increase in base pay), layoffs in editorial and tech, as well as some staffers reducing trying their utmost to ex- hours. Overall, editorial budgets have become both more specifi c and more limited. And, cite consumers in one despite the perception among some people at the company that Batty’s sales team was not of the toughest holiday affected, Denton said advertising staff also took a hit. seasons in years, intro- All of this came as Noah Robischon, formerly the editorial director, left the company after ducing exclusive prod- what two sources described as turf battles between him and the business side, Batty in ucts in the hope that A Tod’s bracelet. particular. One person said it resulted in an ultimatum that led to Robischon’s departure. tightfisted shoppers Robischon, who left in November to run Fast Company’s Web site, did not respond to calls for will open their wal- comment. He has not been replaced, meaning that site leads atop each blog inevitably have lets in the final week more direct contact with the business side. Batty would only say, “I’m proud to be a part of a before Christmas. company with an amazing new breed of editorial zest that also knows how to turn a dime.” Among the products So, does this mean Gawker Media, as Denton himself put it in an October memo announcing introduced are: many of the changes, is “behaving like those big media companies that we mock so easily,” Prada: Forget those with a tougher focus on the bottom line and short-term profi tability? “I suspect we’re being anonymous hand-scrib- more profi t-centric — not less — than some of these big media companies,” said Denton. “We bled gift certifi cates. Prada have to be because we’re independent and want to remain that way.” has created a gold metal Denton is fond of issuing doom and gloom predictions. The most recent: a 40 percent credit card with the brand’s decline in ad spending in the next cycle. If that’s going to happen, Denton claims it hasn’t hit crest and the sum the recipi- Gawker Media yet: He said October and November were “surprisingly robust,” with ad revenue ent can spend in any Prada up 39 percent in November year-over-year. Last month saw 21.7 million unique visitors across store worldwide. There are the network, according four versions in varying to Quantcast, with amounts, from 250 euros, page views at 260 or $355, to 5,000 euros, or million. $6,420. Denton is still Tod’s: Propelled by the suc- believed to own cess of its metal and leather well over half of bangles, Tod’s is beefi ng up its the company. Top costume jewelry offerings with management have sterling silver and multicolored been granted some leather. The chokers feature charms equity shares, and glass decorations. Each piece is according to several hand-stitched using napa, patent leather, people, though crocodile or python and retail for 350 euros, Denton declined to or $450. confi rm that. He did Fendi: High fashion meets high defi nition with Fendi’s latest undertaking. allow that the top Beginning Saturday, subscribers of the Italian pay-TV service Sky, owned by Rupert editors on each site Murdoch’s News Corp., can click on sky.it/fendi and punch in a request to buy a “have in particularly limited edition “MySkyHD wears Fendi” decoder complete with a logoed Fendi good years been cover-up bearing the house’s brown and black F logo. The decoder costs 250 euros, granted some bonus or $355, with 50 percent of proceeds from the edition of 1,000 donated to Child in equity in proportion Priority to support the future of children in Africa. to gains in traffi c.” Moët & Chandon: The legendary Champagne maker has created limited edition — Irin Carmon bottles of its iconic Brut Imperial that can be personalized with words or messages spelled out with Swarovski crystals. The service is available this month in a tempo- HEDI’S LATEST GIG: rary corner inside the trendy 10 Corso Como store here and at other select venues Prada is giving a Images from the Prada men’s wear ad campaign. such as the Atelier Moët in Paris’ Les Galeries Lafayette, at Isolee in Madrid and whole new spin to inside the Four Seasons in Macau. Prices for the Champagne in Milan run from its men’s wear ad $95 for a 750-ml. bottle to $190 for magnums, but vary in other temporary stores. campaign for spring with the help of Hedi Slimane, former Dior Homme designer. Slimane, Rosato: Probably better known outside Italy for its ad images with Demi Moore who resumed his photography career since his exit from Dior last year, took black-and-white and Elizabeth Hurley, the jewelry company is banking on its buy-one-wear-three portraits of brothers Louis and Claude Simonon, sons of Paul and Tricia Simonon, the bass player formula of earrings, a wire necklace with a pendant and a ring with interchange- and manager of Punk band The Clash. The Simonons are still in school in England and neither able stones. Depending on the look of the day, you can choose among a pink quartz, previously modeled before working with Slimane. The former designer has strong ties to the a light blue topaz or a rock crystal that are part of the package and position the music world and published a photographic survey, “Rock Diary,” on the scene earlier this year. stone into the rose gold wreathed setting adorned with tiny hearts, clovers and — Luisa Zargani horns. Prices span from 550 euros, or $706, to 1,100 euros, or $1,412. 14 WWD, FRIDAY, DECEMBER 19, 2008 WWD.COM Visual Display Industry Gets Boost at Market

By David Moin rolling again. I may be optimistic, but you have to be in tough times. MAKERS OF MANNEQUINS, FORMS, “You’ve got to raise the bar,” Pucci fixtures, lighting and decorative displays said. “I think our new mannequin collec- — an unsung, shrinking group that helps tion — it’s called Girl — hit a nerve.” present merchandise and set an image In the Pucci space, the mannequins — seem vulnerable as the retailers they were integrated into performances by the supply slash costs from inventories to Buglisi Dance Theatre. Contemporary renovations and window dressings. fashion by Frank Tell and big, round But the sector got a lift at the market plaster sculptures by Michael Evert organized by the National Association of Sculpture were part of the tableau. Display Industries Dec. 10 to 12, when the “We had a nice turnout of quality cus- 25 or so showrooms in Manhattan wel- tomers — it was not quantity,” said Sal comed retailers who viewed the latest in- Lenzo, vice president of creative mar- store design and visual display creations. keting and sales at Lifestyle, a maker “We saw a lot of international retail- of mannequins and decorative displays, ers that reminded me of the old NADI at 151 West 25th Street. “No one really shows held at the piers,” said Nancy buys, but the retailers take a look at what Jackson, president and founder of is available.” Architectural Systems, a distributor of As Lenzo sees the situation, it’s not architectural and sustainable materials just the economy hurting business. including fl ooring, wood panels, decora- There’s been a dearth of fresh ideas per- tive surfaces and mannequin platforms. meating retailing and the supply side. “There was a guy from Dubai who said “In my opinion, we’ve been in a little he had 300 lingerie shops. Marks & bit of a lull,” he said. “I think everyone got LINDER KRISTEN LODOEN PUCCI PHOTO BY Spencer hadn’t been here in years, but a little comfortable. Maybe this economy The Buglisi dance troupe performs at Ralph Pucci’s showroom. they were in the showrooms.” will shake everyone up to think harder.” In the Nineties, there were twice as Lifestyle offered a new line of manne- dents reinvent a town square. ness, and at the same time a great sense many companies in the sector operating quins for junior departments called Skye, Awards for New York City’s best of ‘Let’s do things better. Let’s help each showrooms, many of which were forced made from recyclable plastic, a cube sys- windows were presented to Bergdorf other’ — a kind of camaraderie. I found to close because of retail consolidation. tem for display made out of Plyboo and Goodman, Macy’s and Sony Style by it uplifting. There is some interesting The sector remains concentrated in the papier–mâché forms, he said. Display & Design Ideas magazine. Louis work being done. These are times when Chelsea section of Manhattan. When busi- The market started off strong with the Vuitton and Polo Ralph Lauren re- creative and innovative people will rise ness was more robust, the markets would Dec. 10 gala for the Planning and Visual ceived awards for excellence in visual to the top.” extend to venues beyond the neighbor- Education Partnership, known as PAVE. merchandising and design that were For the market, Nakaoka’s fi rm de- hood, such as the piers on the West Side, Architectural Systems’ Jackson, who presented by Visual Merchandising and signed a “crescendo” chandelier for a or the Jacob K. Javits Convention Center, chaired the event at Gotham Hall, said a Store Design magazine. soft lighting ambience, a shelving sys- and could occur twice a year. crowd of 500 attended the event, which is The “rising star” award went to tem for handbags, shoes and folded Still, the suppliers were impressed geared to nurture talent. And 12 students, Rachel Zsembery, an associate at goods called Wall Scape, where no tools that retailers last week seemed receptive recognized as winners of a design contest Bergmeyer and Associates Inc. who runs are needed to rearrange shelves, and a to new ideas that could invigorate their sponsored by Macy’s, received a total of store design programs for specialty cli- “Magna Carta” wall of magnets that holds store environments. $16,000 in award money. ents such as L.L. Bean and Talbots and display components for fashion and “They understand they have to move The Fashion Institute of Technology’s designed Bean’s outdoor lifestyle store beauty merchandise. Seven Continents, forward,” said Ralph Pucci of Ralph Visual Presentation and Interior Design program to meet Leadership in Energy a Toronto-based display company, manu- Pucci International, a showroom for departments each got $3,000 for having and Environmental Design standards. factured the products. mannequins, home furnishings and pho- students place in the top three of the “People came to the PAVE event trying “Retailers want things that can move tography and art located at 44 West 18th competition. PAVE also awarded $12,500 to forget [the economy] and to enjoy them- around easily to re-create spaces for dif- Street. “But these are fi nancially tough to The Fashion Institute of Design and selves and connect with people,” said ferent installations and shop-in-shops,” times. They have to be very careful. They Merchandising in Los Angeles for studio Christine Nakaoka, principal at Nakaoka/ Nakaoka said. “They want fl exibility. They are open and looking and just need to technology being developed for students, Roberts, an interior design and retail im- want something that can be built quickly, see the fi rst positive sign in the economy. and another $12,500 to O’More College aging fi rm. “So many lost their jobs and something that has the ability to change Hopefully by late spring, we should be of Design in Franklin, Tenn., to help stu- are looking to connect. There’s nervous- and something that is not so costly.” Escada Earnings Decline 71.1% for Year Jewelry Designer Partners With American Express By Melissa Drier dicted EBITDA of between 23 and 26 By Nina Jones rings are called Gaia and Cronus. million euros, or $34 million to $40 Azagury-Partridge said it’s the ti- BERLIN — As expected, fiscal 2008 re- million. Escada attributed the results LONDON — Solange Azagury- tanium dioxide present in the star mained a tough year for Escada, with to “signifi cantly lower sales.” Partridge has built her name rubies and sapphires she used in operative earnings falling 71.1 percent Group sales reached 582.5 million on an inventive interpretation the pieces that create the starlike and group sales declining 15.1 per- euros, or $871.8 million. Currency ad- of fi ne jewelry, designing pieces effect in the opaque stones as they cent. justed, this represents a 13.1 percent such as emerald-set poison rings, move in the light, which the design- Earnings after taxes are still being decline. Escada brand sales were gold and enamel Union Jack rings er called “an amazing color change.” assessed, but Escada said the clear down 15.7 percent to 388.7 million and a gold pendant in the shape of The collection, which is priced decline in sales plus restructuring euros, or $581.7 million, with EBITDA a human heart. from 12,800 pounds, or $19,000 at cur- expenses would translate into a net reaching 18 million euros, or $26.9 mil- Now Azagury-Partridge has rent exchange, for a Titans pen- loss exceeding last year’s 27.3 million lion, compared to 49.1 million euros, made titanium — a lightweight Asterical ring, dant through to 68,000 pounds, or euros, or $40.9 million. All dollar fi g- or $73.5 million, the previous year. metal better known for its use in titanium, star $101,000, for the Black Rainbows ures are calculated from the euro at an Sales for the Primera division’s industry — the basis for her lat- ruby and colored cuff, will be sold on a made-to-or- average exchange rate for the period. Apriori, Cavita and Laurèl brands and est collection, Titanium Black diamonds. der basis from Azagury-Partridge’s “Escada’s reorientation takes the Biba retail chain, now all offi cially Rainbows, created in partnership bijou Westbourne Grove boutique place in a diffi cult market environ- on the selling block, declined 14.6 per- with American Express Centurion. in London. ment,” said Escada chief executive cent to 211.5 million euros, or $316.5 Azagury-Partridge said she’d already been “They’re like Cinderella jewels — they offi cer Bruno Salzer. “Both custom- million. Primera EBITDA totalled 1.7 researching working with titanium when either fi t or they don’t fi t, as they can’t be ers and commercial partners are buy- million euros, or $2.5 million, down American Express Centurion approached altered, and the size of the stones varies ing very reluctantly at the moment. from 20.1 million euros, or $30.1 mil- her about the collaboration, which marks the for each piece of jewelry,” said Azagury- Nonetheless, the market has reacted lion, in fi scal 2007. 10th anniversary of the Centurion card in the Partridge. positively to the fi rst signals of our As for the fourth quarter, the U.K. and its redesign in titanium metal, re- The collaboration with Azagury-Partridge group’s reorientation in its fashion German fashion house said business placing the plastic version. follows American Express Centurion’s previ- statement, the handling of the markets conditions in the luxury market con- “It’s a diffi cult material to work with, it’s ous partnerships with Alexander McQueen and the full operative business pro- tinued to deteriorate. Group sales fell very unyielding and affords no mistakes… and Boudicca, both of whom worked with the cess.” 17.7 percent during the period. which makes it more special,” said Azagury- company on special projects. According to preliminary fi gures At the end of October, group debt Partridge. Douglas Smith, director of public affairs, released Thursday, earnings before amounted to 177.1 million euros, or For the designs in the 12-piece collection, Europe, for American Express said Centurion interest, taxes, depreciation and $265 million, up 12.4 million euros, or made up of pieces such as a black titanium will host an event for its card members at amortization (EBITDA) for the year $18.6 million, in the year before, and cuff studded with rainbows of multicolored Azagury-Partridge’s boutique in January, and ended Oct. 31 reached 19.7 million inventories also exceeded last year’s diamonds and a titanium cocktail ring set that the company and the designer will look euros, or $29.5 million, compared with levels by about 30 million euros, or with a giant pink star ruby, Azagury-Partridge at other opportunities to collaborate in the fu- 68.2 million euros, or $102.1 million, $44.9 million. On the up side, operat- took inspiration from the titans of Greek my- ture. But Smith added that Azagury-Partridge in the previous year. ing costs (personnel plus other oper- thology. Orb-shaped pendants and earrings, had “free rein” in the design process. The profi t falls below the fashion ating expenses) were pared down 4.8 set with minute colored diamonds, look like “We don’t encroach on any other areas,” house’s third lowered forecast issued percent for the year, and 16.7 percent planets, while a concave and convex set of said Smith. “We choose the right people and at the end of September, which pre- in the fourth quarter. chunky black titanium and colored diamond let them do their stuff.” WWD, FRIDAY, DECEMBER 19, 2008 15 WWD.COM FASHION SCOOPS 12 Kira Stores Closing Today IS OLIVIER OUT?: Olivier Theyskens is still opening a string of nightclubs — the By Sharon Edelson the designer at Nina Ricci, at least for fi rst opened last Saturday in a renovated now. In response to a report that the 15th century church in Florence — he ALL 12 KIRA PLASTININA STORES IN THE U.S. designer’s spring ’09 show may have took time Wednesday night to give back will close their doors today at 6 p.m., a scant seven been his last, Mario Grauso, president of to a group of nearly 25 youngsters from months after the first units opened. Ricci parent company Puig Fashion, said the Little Sisters of the Assumption On Thursday, a sign outside the Kira Plastinina store Theyskens will remain at the creative community center in East Harlem at 22 West 34th Street read, “Going out of business, best helm of the house at least through the through a partnership with Free Arts deal ever!” “Tomorrow at 6 p.m. is the last day,” said a expiration of his current contract in NYC. The Italian designer, along with store employee. “Everything is 70 percent off. All the October. “At this point, we’re very happy Free Arts board member and stylist stores in the U.S. are closing tomorrow.” with his contribution,” said Grauso. “I Mary Alice Stephenson, spent two hours Calls to the company’s corporate offi ce, KP Fashion look forward to seeing his next show, with the youngsters who were familiar Company in Los Angeles, went unanswered Thursday. after which we’ll start the negotiations, with Cavalli’s work through his designs The Kira Plastinina collection is designed by 16-year- which is typical.” worn by the likes of Beyoncé, Christina old Kira Plastinina, whose father Sergei Plastinin, a ty- Aguilera and Miley Cyrus. Cavalli coon in the dairy and fruit business in Russia, has bank- DOWN BUT NOT OUT: Senior staffers at supplied his sartorial guidance and his rolled the concept. There are about 40 Plastinina stores Bill Blass were said to be negotiating own fabrics to the children to help them in the Russian Federation. Sergei Plastinin has said he’d severance packages Thursday with make handmade scarves with various like to have 500 stores internationally. The plan for the management. NexCen Brands Inc., beaded and jewel adornments. He also U.S. was to open 50 stores in the next three years. which owns Bill Blass Couture and its gave them briefcases of art supplies Russian oligarchs like Plastinin, who was heavily in- ready-to-wear business, is still trying from FAO Schwarz. “He was the most vested in the Russian stock market, have fallen hard and to make a last-ditch effort to sell the Roberto Cavalli fashion Santa Claus I’ve ever seen,” said fast, their declining wealth a refl ection of the meltdown company. As reported, industry observers and Mary Alice Stephenson of Cavalli. of Russia’s stock market. The distressed U.S. economy expect the Bill Blass Couture operation Stephenson in didn’t help Plastinina, nor did shortcomings in how the to be shuttered by the end of the year. East Harlem. CLEANING HOUSE: This season may chain was operated. The fl ow of merchandise, espe-

The company still has some top- MADER/PMC SHAUN PHOTO BY be the season to end all seasons for cially new styles, was weak, making it diffi cult for Kira notch talent on board, including men’s sample sales, holiday shopping nights Plastinina to compete with fast fashion retailers such as wear designer Michael Bastian and Prabal Gurung on the and rock-bottom discounts, but Steven Alan hasn’t lost sight H&M, whose stores receive new shipments daily. women’s side. A few employees have already found greener of a little charity. The designer has donated 1,000 pieces of The Kira Plastinina stores ranged in size from 1,400 pastures, including public relations manager Hana Kim. women’s and men’s clothes to Housing Works Thrift Stores. square feet, to 5,600 square feet for the West 34th Street Next month she will join Erin Fetherston as public relations/ The assortment, which includes his own label as well as others unit. Other Kira Plastinina stores are located in SoHo; marketing manager. that are available in his store, will be sold Dec. 27. But Alan Americana at Brand in Glendale, Calif.; Beverly Center NexCen executives had nothing new to report Thursday, insisted his generosity is not due to the rocky retail climate. and Robertson Avenue in Los Angeles; Beverly Drive in according to a company spokeswoman. But Bill Blass staffers “Basically, every time we have a sample sale, there are things Beverly Hills; Shoppingtown Topanga in Canoga Park, are preparing for pink slips, which some say could start today. left over — some we donate and some stay in our inventory. Calif.; Third Street Promenade in Santa Monica; Stamford This year we decided to clean house from several past sample Town Center in Connecticut; Fashion Show Mall in Las CAVALLI’S GOOD DEED: Though Roberto Cavalli has been busy sales,” he said. Vegas, and Garden State Plaza in Paramus, N.J.

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SALES EXEC & PRODUCTION MGR. Hong Kong base Ladies company NY EXCESS INVENTORY BUYER Division seeking talented, ambitious Immediate Cash/No Inventory Too Large ASSOCIATE DESIGNER Sales Executive & Production Manager. No Hassle/Integrity Driven/Closeouts Needed PATTERN/SAMPLES Womens Apparel Company is seeking The ideal candidate should handle: ACCOUNT MGR...... $75-90K GARRISON MILLS: 901-338-6364 www.fusioninternational.net Garment center location. Professional an Associate Designer to help develop •Activewear/ athletic wear Sears, K Mart, Workbench exp REPS WANTED [email protected] /Reliable Quality. Men & women all style. wovens and knitwear. Must have the •Contemporary/ Junior Jennifer Glenn SRI Search 212 465 8300 Low Cost. Small production. 212-563-3331 ability to produce a complete technical •Inventories [email protected] Corrected e-mail address for response: design package. Minimum 4-6 years •Lingerie www.srisearch.com [email protected] design experience. Extensive working Please send the resume to : COMMERCIAL knowledge of Adobe Photoshop & Illus- [email protected] PATTERNS, SAMPLES, trator required. Pay commensurate REAL ESTATE with experience. Email resumes to: [email protected] PRODUCTIONS SALES KEY ACCOUNT EXEC $100-150K All lines, Any styles. Fine Fast Service. Salesperson And Junior BOE + comm. Current exp in beauty Call Sherry 212-719-0622. Men’s/Women’s Apparel Sales Graphic Designer Wanted products such as lip balm, shampoo, Well financed men’s & women’s im- SALES: The candidate must have strong nail products, etc. Must have exper porter, in business 18 yrs, looking for knowledge in design, product develop- and relationships with drugstores + salaried/Comm. salesperson w/ strong ment, and off-shore production. Indus- stores like Claire’s, etc. Company has PATTERNS, SAMPLES, contacts to major retailers, or have or- try contacts are a plus, the candidate estab accounts. Wants strong personality Showrooms & Lofts ders in hand & looking for well financed must also have a proven track record to increase volume. Must compete BWAY 7TH AVE SIDE STREETS PRODUCTIONS co. to produce. Contact: 212-764-1777 of opening new accounts. with companies such as ChapStick Great ’New’ Office Space Avail Full service shop to the trade. [email protected] GRAPHIC DESIGNER: Who is able to Carmex, Blistex or Dove, Calgon, ADAMS & CO. 212-679-5500 Fine fast work. 212-869-2699. ricky @ cactusclothing.com flat sketches, graphics and prints. Strong Fructis or Bonne Bell, etc. PC, Illustrator& Photoshop skills reqd. [email protected] 973-564-9236 LCXYG is a high-end T-shirt Company located in the Fashion District. We offer Sr. Industry Executive an attractive package with medical Strong corporate contacts. Looking for benefits. Please e-mail your resume sales opportunity 609 519 1399 with your current salary and your de- SALES REP/MGR sired salary to: [email protected] Prominent women’s special occasion Showroom for Sublease brand seeking aggressive & organized AmericasMart, Atlanta person for South-East. All resumes 1000 sqft. Premier Local, Over Atrium. Vivienne Tam handled with confidentiality. Email: Ideal Evening/Prom [email protected] 212.398.1090 emily Sales Manager Int’l designer seeks Sales Mgr. w/min 5 Tribeca Showroom yrs. exp. Must have est’d relationships w/key retailers. Int’l exp. a+. Send re- 100% Share available to for 1 agent with contemporary collections. sume w/c letter to: Call 212-431-4840 or e-mail [email protected] SR. ACCOUNT EXEC [email protected] Niche leader in the teen & tween li- fashion WINTER censed market seeks strong seller with proven track record in the bath & body, careers ACCESSORIES cosmetics, lip care categories. Must have min 5 - 10 yrs exp with account DIVISION HEAD relationships in mid tier, specialty, Strong NY accessory co. seeks DH for drugstore chains & mass retailers. cold weather. Individual must have 3 yrs Must be self motivated & organized. in this industry. Must either have sales, Must be able to maintain, grow existing merchandising or production exp. The business, as well as able to open new right individual will oversee division business. Must have strong communica- from Asia to NY & report to principles. tion skills & be a team player. Pls fax / Compensation includes salary + profit email resume/sal reqs to: Attn HR212 sharing. Fwd cover letter & resume : [email protected] or fax 212-944-8409 [email protected]