RetailersThe Inside: Pg. 9 A JUICY STRATEGY/10 KATAYONE ADELI TO CLOSE/13 WWD by ’02 Profits WWDWomen’s Wear Daily • The Retailers’THURSDAY Daily Newspaper • April 17, 2003 Vol. 185, No. 79 $2.00 List Sportswear Heartbreaker NEW YORK — Like the Seventies, the Eighties is one of those fashion decades that just refuses to die. And one of this season’s looks borrows from Eighties’ pop music tough girl Pat Benatar. Black accented with zippers and leather jackets is back for fall. Here, a leather jacket and faded jeans from FRX Clothing worn with a JLo by Jennifer Lopez and top. For more on the look, see pages 4 and 5.

Troubles at Fin.part: IOR GLASSES; STYLED ROXANNE BY ROBINSON-ESCRIOUT KPMG Cites Tension, Refuses to OK Books By Amanda Kaiser — Falling.apart? The company says no, but Fin.part, the multibrand group that owns Cerruti, got a slap in the face this week when auditing firm KPMG, questioning the feasibility of its business plan and citing “financial tension” in its books, declined to certify the company’s 2002 accounts. Fin.part fired back, calling KPMG’s stance “absolutely unjustified,” and said it reserves the right to take legal action. See KPMG, Page3 PHOTO JOHN BY AQUINO; MODEL: ABIGAIL SAUM/ID; MAKEUP TOMMY BY JOINER FOR HAIR ARTISTS; MANABU BY UNNO ISHI; FOR CHRISTIAN SALON D 2 WWDTHURSDAY Sportswear GENERAL For fall, denim designers offer lots of black denim and sportswear accented ™ 4 with zipper trims for a hardware edge, and leather jackets for a touch of tough. Cerruti parent Fin.part got a slap this week when auditor KPMG, questioning A weekly update on consumer attitudes and behavior based 1 the feasibility of its business plan, declined to certify the firm’s 2002 accounts. on ongoing research from Cotton Incorporated A month after being acquired by Liz Claiborne, Juicy Couture’s founders 10 talk about growth strategies for the hot contemporary label. WWD, THURSDAY, APRILWWD, THURSDAY, 17, 2003 FASHION FORE-FRONT The WWDList: The most profitable apparel retailers of fiscal 2002, in Women crave style with sports savvy 9 descending order of actual reported net income. EYE: Amanda Hesser, author of “Cooking for Mr. Latte,” more Mediterranean Screen siren Rene Russo usually scores a and Australian Opens, were heralded as much 6 gems from Nancy Harmon Jenkins, and Tyler Florence’s book debut. hole-in-one with her movie wardrobes, and her for the strategies of the game as they were for show- Classified Advertisements ...... 14-15 appearance in the popular 1990’s romantic comedy casing a fashion-forward collection of eye-catching Tin Cup was no exception. While her heart ensembles. “I think it’s great to see everybody really To e-mail reporters and editors at WWD, the address is breaking co-star Kevin Costner sent many a getting into what they're wearing, and getting [email protected], using the individual's name. woman swooning, so in fact involved in design and fashion SUBSCRIPTION RATES U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. did Ms. Russo’s golf ensem- and color,” tennis champ All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. Mary Pierce commented to Please allow 6-8 weeks for service to start. Individual subscription information/Single Copy Sales : (800) 289-0273; bles, leaving female golf outside U.S. (818) 487-4526; new group subscription information 212-630-4196 enthusiasts wondering if they the media at one of the events. Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional also could look as good on the Certainly no stranger to this issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. putting green. phenomenon is American a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., “Why can’t we love sports tennis ace Venus Williams, a subsidiary of Advance Publications Inc. All rights reserved. and fashion at the same time?” whose star is rising in fashion No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage or retrieval system, except as may be asks Deirdre, a 34-year-old almost as formidably as it has expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 attorney and weekend golfer on the court. Not only does Periodicals postage paid at New York, NY and other offices. Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 in . “They Venus have a good eye for GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 Printed in the U.S.A. shouldn’t have to be mutually color and silhouette in All signed articles published in the paper represent solely the individual opinion of the writer and not those of exclusive pursuits.” selecting new tennis outfits, WOMEN’S WEAR DAILY. Well, Deirdre, designers are but it seems she has quite the For Web site access, log on to www.WWD.com listening and the proof is in hand in it as well. “Obviously, the putting, so to speak. Evi- “Today’s sportswear offers Venus Williams is well known dence the onslaught of top- structure, flexibility and movement for her performance and name design houses including to give the body an opportunity wardrobe selections on the In Brief Giorgio Armani and Ralph court, but what is probably to do what is intended for tennis, ● Lauren, along with a host of lesser known is that Venus KMART DELAY: The Chicago bankruptcy court judge oversee- golf and jogging.” ing the confirmation hearing on Kmart’s reorganization plan has others, who have launched Mike May is quite adept at sewing some opted to continue the hearing through Monday. Originally set for exclusive golf apparel collec- of these creations herself,” –Sporting Goods Manufacturing Monday and Tuesday of this week, the court session was contin- tions for customers who love Association International (SGMA) offers Joan Campbell, execu- ued into next week to give creditors and the court more time to the brand’s fit, fashion and tive vice president of the address some of the concerns raised by unsecured creditors, as femininity but crave functionality. Home Sewing Association, an organization dedi- well as take two days off for the religious holidays. As reported, Tamara Raibil, who has just launched Tegna, a cated to “getting people sewing.” some have opposed confirmation of the plan until after $367 mil- new collection of golf apparel designed exclusively But Venus isn’t the only one looking for a little lion is returned by so-called critical vendors who were paid ahead of everyone else in the bankruptcy. for women, offers her perspective. “Women want attention both in the stadium and out. Forty-one golf apparel that enhances their game and flatters percent of women admitted to the Monitor that ● ALL BETS OFF: Luciano Benetton’s sons, Rocco and Mauro, them on the course. They also want golf apparel they like to get noticed for their clothing. “There are being investigated for alleged money laundering related to that reflects their intelligence and identity off the is definitely a trend in flattering fit,” confirms the opening of the Benetton Sport Café in New York. The broth- course – while socializing in the clubhouse, run- Mike May, spokesperson for Sporting Goods Man- ers are being investigated by the Florence, , district attor- ning errands on the way home, or rushing back to ufacturing Association International (SGMA), the ney. Benetton lawyers issued a statement Wednesday saying that the office,” she explains. “Tegna accomplishes this global business trade association of manufacturers their involvement was limited to participating in transactions in the Café project — the creation of a chain of theme restaurants. with feminine silhouettes and a fit that inspires and marketers of sports related businesses. “Today’s According to the statement, the Benettons ultimately did not get confidence utilizing sophisticated fabrication.” sportswear offers structure, flexibility and move- involved in the project. “The transactions were transparent and Raibil seems to have hit on an important ment to give the body an opportunity to do what is clear,” said the statement. For this reason, the lawyers say, the aspect of modern dressing; 60% of female intended for tennis, golf and jogging.” accusations against the Benettons are not “understandable” and respondents revealed to the Cotton Incorporated May asserts that when you’re in the right clothing that they have faith the investigation will clear the brothers. A Lifestyle Monitor™ that they prefer to wear one with a flattering and comfortable fit, it only Benetton spokesman declined further comment. There is no in- enhances the sports experience. “You’re more likely vestigation currently in the U.S. regarding the Benettons. comfortable outfit for different activities during Tommaso and Francesco Buti, who were arrested three years the day. “Women are looking for femininity and to focus on the activity and feel better about the ago for mismanagement of the Fashion Café chain, are also functionality,” Raibil asserts. game you played or the miles you ran,” he believes. being investigated in the same inquest. “Women are definitely looking for more mileage For those literally on the run, there are countless out of their wardrobes, and Web sites that offer the sports ● THIRD TIME LUCKY?: It’s no secret that Harrods has been they want items that are When taking up a new sport, do you: styles of the moment. Allspir- having problems hanging onto its managers, so it came as no sur- versatile,” observes Sarah itfitness.com is one site that prise that the post of managing director changed once again this 2001 2002 +/-pts. week. Max Rigelman, chief executive and managing director of Easley, co-owner of Kirna Buy new outfit 27% 30% +3 pts. offers everything a dedicated Kurt Geiger, which operates the footwear concessions in Zabete, a hip fashion desti- Get by 67% 64% -3 pts. jogger could want, from per- Harrods, Selfridges, Liberty of and a string of company- nation in New York City’s formance enhancing socks to owned stores, has replaced Marty Wikstrom, who took over the Soho District. “Women all cotton athletic wear, with post in November 2001. Wikstrom, a former Nordstrom execu- want many uses out of items that they put in a a direct link to Road Runner Sports, billed as the tive, had overseen Harrods’ plan to renovate and reposition the weekend bag. We definitely offer that kind of utility “world’s largest running store.” Relates SGMA’s May, Knightsbridge store, making it more appealing to London shop- chic and sportswear chic at Kirna Zabete.” “It’s nice to be fit and, of course, look fit.” pers and less reliant on tourists. According to a Harrods state- ment, she left the business after her contract ended. Rigelman Easley points to two items in the store’s spring May concludes with a final point about the ulti- will remain the chief executive of Kurt Geiger. collection. “Hussein Chalayan has a pair of 100 mate accessory any athlete can indulge in – the percent cotton gray sweat-knickers with deep smile of accomplishment. “When you look great pockets that are perfect to wear from yoga to and are having a good time, people know it. They WWDStock Market Index for April 16 dinner,” she enthuses. Easley also singles out a pair will focus on that more than anything else.” of drawstring pants from new designer Lana Composite: 104.74 Broadline Stores: 106.15 Softline Stores: 100.52 Bilzarian that she likens to “designer scrubs,” and This story is one in a series of articles based on findings envisions as perfect for a walk on the beach or an from Cotton Incorporated’s Lifestyle Monitor™ evening on the town. tracking research. Appearing Thursdays in these pages, Golfers aren’t the only ones clamoring for a little each story will focus on a specific topic as it relates to the -1.43 -1.57 -2.02 American women’s wear consumer and her attitudes style in their step; runners and tennis aficionados : 86.40 and behavior regarding clothing, Vendors: 102.70 are also on the line for fashionable wear for their Index base of 100 is athletic pursuits. Some of the more recent women’s appearance, fashion, selection and keyed to closing prices tennis championships, including the United States many other timely, relevant subjects. ® of Dec. 31, 2002. -0.59 -1.76 3 WWD, THURSDAY, APRIL 17, 2003 — Rose Apodaca Jones Apodaca Rose — Last summer, Fin.part ac- In an effort to calm fears, Facchini personally owns 19.5 Another component of the Deloitte & Touche Italia said Fin.part holds nearly 30 per- The appointment marks the The deal happens just in time This is the second about $187.5 million from those divestitures. Last May, the firm did manage to sell the sports- wear label, Best Co., to its dis- Cisalfa, but barely dent- tributor, ed the debt with just $2.7 mil- from the sale. lion in proceeds knowledged that it would look into selling non-sportswear assets as well, including footwear label Andrea if Pfister, it wasn’t able to fetch a suitable price for its sportswear assets. In a market in- creasingly biased in favor of buy- ers, it’s been unable to get such a price and, since last July, has fo- The luxu- cused on selling Frette. ry and loungewear firm, which had about $135 million in 2001 sales, certainly fits the pro- file of Opera, the Italian invest- ment group, but earlier this week, as reported, talks between Opera had stalled. and Fin.part said Fin.part its first-quarter rev- enues rose 6 percent to $137.2 million from $129.4 million in the prior-year It quarter. also said clothing orders for the fall-win- ter season are up 11.9 percent on the year to $184 million. percent of Fin.part while the Libyan Arab Foreign Investment Company SA, or Lafico, Libya’s corporate investment arm, holds said Lafico 8.95 percent. Facchini will “adhere to any eventual cap- ital increase.” Fin.part universe hit its own rocky patch. company Olcese, which counts Fin.part as also failed its biggest shareholder, to get its 2002 accounts approved. it was concerned that Olcese might not secure proper financ- ing to continue operations. Olcese in response said it is re- vising its business plan to gener- ate positive results in the future. cent of Olcese, while Lafico owns another 21.7 percent of the firm. plenty of sexed-up leather looks and sharply tailored suit- ings, as well as introducing his new footwear collection hitting at fall and priced be- tween $400 and $1,250. third replacement in a year at the house. Roberto Menichetti left in May 2002 after six months. Cardona has been seen at the and Milan offices Cerruti, or in of the company of its executives for several months now, yet neither side would con- firm a deal was in the works. for Cardona to host the opening of the women’s boutique at the 2,500-square-foot Cerruti door on Rodeo Drive, set to open in the coming weeks. designer to be tapped at a Euro- pean house in as many months. In early March, Revillon, one of ’s oldest furriers, named Rick Owens its new creative di- rector and said Owens would show his debut ready-to-wear collection during the July cou- ture shows at new Revillon’s headquarters in the Marais. As for the designer, he’s in Facchini Facchini said Fin.part is in One Milan-based equity ana- Other sources indicated the Since acquiring Fin.part with But after the Cerruti acquisi- the debt-reduction Originally, David Cardona ly that the Cerruti deal would be a boon to broadening Cardona’s name in the global marketplace, an advantage they are looking forward to as the small house seeks to expand into other cate- gories and markets. Milan until the end of this week, having flown there fol- lowing his own presentation March 30 that opened Los Angeles fashion week with such clients as Janet Jackson seated front row. In signature form, the collection offered group’s banks approve of the strategic plan and are willing to give Fin.part another $108 mil- to recapitalize. lion this year “advanced talks” to sell off some real estate and manufacturing assets. In contrast to prior strategies, he pointed out that selling brands isn’t in the cards, but it could be in the future. lyst cautioned that the firm had better find financing quickly or sell off a large brand like Frette. if “Obviously, they don’t do it on time, they run the risk of going out of business,” he said. Cerruti business has shopped around, but is been Facchini said to be seeking a premium price that will recoup what he paid during the inflated seller’s market of the Nineties. Those heady days ended about two years ago, with the now defunct Pegasus Group perhaps the in- dustry’s most noted casualty. partner Giancarlo Arnaboldi, has Facchini consistently run into roadblocks in his attempt to build the company into a luxury fashion powerhouse. In two sepa- rate transactions, it bought a 51 percent stake in Cerruti in 2000, paying about $70 million for its controlling interest. Earlier in it had sold its Bonaparte the year, division for approximately $136 million, earmarking that money and another $50 million in warrants issued in 1998 for fash- ion and luxury acquisitions. tion, servicing debt became a higher priority than its desire for a fashion empire. One year ago, said Facchini the company would seek to sell most of its assets in an attempt to reduce its debt load, as well as to focus on the develop- ment of the Cerruti business. plan was to sell sportswear Fin.part’s labels and generate After weeks What this means regarding Cerruti representatives could Cardona will continue to de- Founded Founded in 1996 by Gianluigi But most of that binge came meanwhile, Facchini, con- Among the sticking points, Fin.part responded by saying “The auditors interpreted LOS ANGELES — of waiting, Los Angeles-based designer David Cardona offi- cially signed on as the head de- signer for all women’s lines at Cerruti, including the 1881 dif- fusion line, WWD learned late While Wednesday. a formal an- nouncement is expected next week, the contract stipulates the position is effective March 1, 2003, confirming buzz that Cardona had already begun work on the fall collections. designer who Istvan Francer, only presented two seasons thus far at Cerruti, could not be determined at press time. not be reached for comment. sign his namesake collection, splitting his month between Cerruti studios in Milan and his own offices in the city of West Los Angeles. not “We’re shutting down Cardona to do Cerruti,” said John Bowman, who in 1997 partnered with Cardona after he The leftcompany, Richard Tyler. Bowman Cardona LLC, is not in- volved in the Cerruti deal. But both men acknowledged recent- Cardona Signs On as Cerruti Designer Cerruti as On Signs Cardona KPMG: No OK for Fin.part for OK No KPMG: Continued from page one Facchini, now its chairman, Fin.part went on an acquisitions binge, amassing a stable brands of such as Cerruti, Maska and home linens group Frette. The company also bought Pepper Industries, Henry , Mon- cler and Marina — Yachting all sportswear labels — as well as the footwear firm, Andrea Pfister. during the fashion group craze of the late Nineties through 2001, when feverish corporate brand-buying led to a sky-high seller’s market, and as a result, among others, amassed Fin.part, crippling levels of debt. tends that Fin.part has accumu- lated less than $432 million in debt to this point and that his banks are willing to invest more to recapitalize the company. 2002 consolidated Fin.part’s sales came to $494.6 million. Dollar fig- ures have been converted from the euro at current exchange. KPMG said it had no evidence that Fin.part will succeed with plans for a capital increase or find buyers for the nonstrategic assets and real estate it wants to sell. The auditor said it couldn’t verify whether Fin.part had the “base conditions” needed to con- tinue operating. Fin.part has a large bill coming due in July 2004 when $216 million of Cerruti bonds expire. that KPMG didn’t consider perti- nent information including a guarantee for $48.6 million from its bankers or that the company is concluding the process of selling assets and finding new investors. their mandate in too restrictive a manner,” Facchini told WWD, adding that the firm will provide KPMG with more information in the coming days in hopes of a new verdict. He noted that the was halfway around are giving massive dis- “Apparel “Apparel is plainly hurting,” In the overall economy, con- “Inflation is hard to find,” Dhawan said weak pricing “That could stoke deflation In the individual categories Prices for outerwear fell 0.7 Her handler wasn’t the only one OK. People are good at “That’s In a statement, Unifi chief Among other things, the com- at Georgia State at- University, tributed the weakness in apparel prices to heavy discounting and the move away from conventional department stores to discounters. are try-Dhawan said. “Retailers ing to move merchandise and they counts, and that is the cause of the problem.” sumer prices rose 0.3 percent in March, still reflecting higher en- ergy costs, which have since begun to fall. The core CPI, ex- cluding food and energy prices, was flat in March, showing that other prices are under control. Steidtmann are said. seeing “We more signs of it at the producer price level than at retail.” power at retail is good news for consumers, but warned it is not “healthy to have inflation go to- ward zero.” fears in core prices,” he said. tracked by retail Labor, prices for dresses fell sharply by 2.6 percent in March on a seasonally adjusted basis and plunged 3 while percent year-over-year, prices for suits and separates fell 1 percent last month and fell sharply by 3.6 percent over the last 12 months. percent in March against Febru- ary and declined 0.5 percent over the last 12 months, while prices for nightwear, underwear, sportswear and accessories inched up 0.1 percent in March, but fell sharply by 3.8 percent over the last 12 months. the Academy Award-winning actress the Academy Award-winning in the Adidas warm-up suit and baseball cap. By the time Yankees Nicole Kidman the 1.6 mile loop grooving to her she had outpaced her Walkman, bodyguard. Maybe his denim jacket slowed him down. But when she opted for a second loop, he gave up altogether. One local keeping an eye on her. running coach observed, “It is her, but she is a very ugly runner — horrible form. I cannot look. different things. She is a very good actress,” he said. in the coming year. executive officer Brian Parke said: “Reduced domestic sales stemming from [the] prolonged soft economy, coupled with in- creased imports from , have required us to reassess every as- pect of our business.” pany is eliminating half of its previous eight categories of Unifi manager. said all of its North American facilities, in- cluding headquarters, will be af- fected by the cuts. For the six months ended Dec. 29, Unifi posted net income of $2.2 mil- lion on sales of $423.4 million. . Gucci As runners Retail Retail prices Unifi Inc. said Are those hot-and-

Mario Testino

The company said it expects The Greensboro, N.C.-based Rajeev Dhawan, director of “We’ve had “We’ve entrenched defla- Apparel retail prices have Retail Retail prices for all apparel Women’s Women’s apparel retail Fashion Scoops Fashion heavy vixens in the Gucci campaign turning over a new leaf? Sources said the cast for the upcoming fall ads included — surprise — a crib full of babies, along with fresh- faced adult models posing for photographer GUCCI GOO-GOO?: declined all comment. GOING FOR THE GOLD: chugged along the Central Park night in the 75- reservoir Tuesday degree heat, most paid no mind to the cuts to lower its total payroll by about $20 million. They will result in an $11 million charge fiber and company also re- vealed that it has eliminated around 200 positions through at- trition in various departments All told, since the start of the year. the cuts will reduce its workforce by about 15 percent, to 3,470. Unifi to Cut 400Cut to Unifi Jobs NEW YORK — that Wednesday it plans to lay off about 400 people in an effort to cut costs. The company start- ed notifying some workers last week and plans to complete the cuts by Friday. the Economic Center Forecasting tion in apparel, which is one of the most globally traded prod- ucts there is,” said Carl Steidt- mann, chief Deloitte Research. economist “There has at been a freeing up of trade in ap- parel and textile products over the last decade, and there are a lot more places you can source it from and at a lot lower cost, which puts a downward pres- sure on retail prices.” been falling year-over-year since November 1998, she said. fell 0.4 percent last against month February and declined 3.6 percent The year-over-year. overall apparel index includes footwear prices, which fell sharply in March by 2.4 percent and dragged the rest of the index down, according to the analyst with the Labor Department. prices fell 0.6 percent in March against February on a seasonal- ly adjusted basis and plunged 3.4 percent over the last 12 months. The 12-month decline marks 23 months of year-over- year declines in women’s retail apparel prices, according to a Labor analyst. WASHINGTON WASHINGTON — for women’s apparel fell in March for the first time in that month since 1997, despite the traditional boost from spring and summer introductions, ac- cording to the Labor Depart- ment’s Consumer Price Index, released Wednesday. Sees First March Fall Since ’97 Since Fall March First Sees Ellis Kristi By Retail Women’s Apparel Prices Apparel Women’s Retail 4 WD, THURSDAY, APRIL 17, 2003 WD, THURSDAY, W INSON-ESCRIOUT FOR SALON ISHI; STUART WEITZMAN SHOES; ACCESSORIES BY AMICI ACCESSORIES; FASHION ASSISTANT: DAVID YASSKY; STYLED BY ROXANNE ROB ROXANNE BY STYLED YASSKY; DAVID ASSISTANT: FASHION ACCESSORIES; AMICI BY ACCESSORIES SHOES; WEITZMAN STUART ISHI; SALON FOR

Allen B. by Allen Schwartz’s cotton, and spandex top with cotton and Lycra denim jeans. PHOTOS BY JOHN AQUINO; MODELS: ABIGAIL SAUM/ID AND AMBER NOELLE/SUPREME; MAKEUP BY TOMMY JOINER FOR ARTISTS; HAIR BY MANABU UNNO MANABU PHOTOSBY HAIR ARTISTS; FOR JOINER TOMMY JOHN BY BY MAKEUP NOELLE/SUPREME; AMBER AND SAUM/ID ABIGAIL MODELS: AQUINO; 5 WWD, THURSDAY, APRIL 17, 2003 Baby Phat’s nylon jacket with Met Jeans’ cotton jeans. Baby Phat’s nylon jacket with Met Jeans’ cotton jeans. GIRL Plein Sud Jeans’ cotton and overalls Lycra with E.Vil’s cotton T-. Plein Sud Jeans’ cotton and overalls Lycra with E.Vil’s cotton T-shirt. hardware edge along with leather jackets for that touch of toughness. Here, a sampling. a Here, toughness. of touch that for jackets leather with along edge hardware NEW YORK — Look out — fashion’s quintessential bad girl is back in town. For fall, denim fall, For town. in back is girl bad quintessential fashion’s — out Look — YORK NEW designers are offering lots of black denim and sportswear accented with zipper trims for that for trims zipper with accented sportswear and denim black of lots offering are designers Polo Jeans Co.’s cotton top and denim jeans. Polo D&G’s leather motorcycle jacket over DKNY Jeans Juniors’ cotton and top and JLo Lycra by Jennifer Lopez’s cotton and spandex denim jeans.

D&G’s leather motorcycle jacket over DKNY Jeans Juniors’ cotton and top and JLo Lycra by Jennifer Lopez’s cotton and spandex denim jeans. TOUGH 6 What’s Cooking? Ever wondered about the origins of fleur de sel, the location of the world’s oldest bakery or which explorer discovered peppers? The answers lie within Reality Bites Nancy Harmon Jenkins’ latest book, “The Essential Mediterranean,” which catalogues in crisp prose NEW YORK — Who would have guessed the 10 essential ingredients of the region’s that one mediocre meal at Merchants, of cooking. The esteemed food writer, who penned “The all places, could inspire a food column, Mediterranean Diet Cookbook,” has written the kind of tome that eye® launch one of New York’s favorite media satisfies foodies, literary types — and any combination of the two.

WWD, THURSDAY, APRIL 17, 2003 WWD, THURSDAY, couples, and provide a platform for a dis- In addition to essays that explore the historical significance of salt, cussion of perfectly formed fish quenelles? olive oil, bread, wine and vinegar; dairy, legumes, pasta and couscous; But when Amanda Hesser, the pixieish New York the family pig, and tomatoes and peppers in Mediterranean cooking, Times food writer, and Tad Friend, who writes for the each chapter features relevant recipes, over 170 in all. New Yorker, met for a blind date, sparks flew. And then “It’s definitely not for a novice,” admits Jenkins, who divides her he famously ordered — gasp! — a post-dinner latte. seasons between and Maine. “But the book is also for With a plucky, can’t-help-lovin’-that-man-of-mine people who don’t care about cooking and can’t bear standing in spirit, Hesser’s popular series of Mr. Latte columns, front of a stove.” penned for the New York Times Magazine, chroni- A chapter on olive oil, for example, not only describes the cled their relationship as well as her attempts to process of creating a virgin press, but offers a profile of Majid convert Friend, if not into a foodie, then into the Mahjoub, known as the “Shakespeare of olive oil” in Italy, and a kind of guy who appreciates head cheese and din- passage on the symbolism of the olive tree — as well as recipes for ners that last all night. garlic mayonnaise, French mustardy vinaigrette, gazpacho and oil- To his credit, Friend achieves gourmet status by poached salmon fillet. chapter 18 of her new book, “Cooking for Mr. Latte,” Since 1966, Jenkins has lived all over the Mediterranean, which elaborates on the original essays. But Hesser cooking, eating and writing. Their way of life, she says, is a model savors the story of their romance from the first meal Americans should espouse. “The quality of ingredients is crucial to she serves him in 2000 — roasted guinea hen, and hari- Amanda Hesser the quality of what you’re eating or cooking,” she says, pointing out cots verts with walnuts and walnut oil — to the lobster the first tip Americans should address. Valuing life over work is the rolls and smoked trout salad with quail eggs served at second. “Americans think they’re virtuous because they work so their wedding last September, which marked the finale coconut cake, served at a rooftop party; the veal scal- much,” she adds. “But they’re missing out on their lives.” of Hesser’s column for the magazine. lopini with fluffy parmesan a friend makes in ; While Jenkins book will satisfy the M.F.K. Fisher types, Tyler “Tad read every article before it came out,” says single-girl salmon à la fashion writer Ginia Florence’s debut cookbook, “Tyler Florence’s Real Kitchen,” is for Hesser, minus her signature baby barrettes, Bellafante, and even Aunt Nora’s mock lobster. those who don’t know dicing from mincing. Devotees of the Food over breakfast at the City Bakery. In the tradition of M.F.K. Fisher, Hesser Network will recognize Florence from his “Food 911” series, in “Sometimes he’d sort of groan at some- mingles the nostalgic sweep of a gourmet’s life which he hopscotches like a madman from city to city, rescuing thing I’d written, but I’d say, ‘It is true, with the practical of cooking. “The home cooks from food emergencies. To promote the book, the you did order a Budweiser at that fancy recipes in the magazine were more ‘add milk, energetic and voluble 32-year-old chef is restaurant.’” stir,’” she says. “I added back in a lot of the making a whirlwind 43 appearances in 20 While the notion of whipping up sensual details.” cities in 20 days. The book, which features meals for your man might seem a little She also includes chapters that chronicle more than 150 of his favorite recipes tailored retro, Hesser’s cookbook cum mini-mem- the less sugar-coated aspects of the couple’s to specific occasions such as Dinner with oir is as modern and urbane as her romance, which were played down in the mag- Friends or One-Pot Wonders, is a reflection of approach in the kitchen. Alongside the azine. “A story about us moving in together and Florence — easy, approachable and speedy. innovative, American-luxe recipes she for- not getting along well seems a little more appro- It’s also flying off the shelves. mulates, Hesser, who studied French haute priate to a book that lays out the entire path of the rela- In just two weeks, more than 65,000 cuisine, celebrates the high and the low, tionship,” says Hesser. “Luckily, nothing tragic or awful copies have been sold. Florence and his offering her grandmother’s simple macaroni and happened along the way, but if it had, I would have had basic approach to food, it seems, are more cheese recipe as well as Julia Childs’ recipe for to find a way to write about it.” popular than he ever imagined. Daube de Boeuf. “There is a certain kind of food The tragedies Hesser encounters these days are “You never understand the power of TV writing that’s about fantasy, but I wanted to do some- more likely to be of the sunken-soufflé variety. until you do something like this,” says the chef, thing that was about a real life,” says Hesser, 31. “It’s “People call me up and say, ‘I’ve got this thing in the who also is enjoying his new status as a pinup. At a book signing on not about hiding flaws and making it all seem won- oven and it isn’t looking like you described. Can you Monday in San Francisco, 550 fans showed up to watch him cook derful. I wanted cooking to seem accessible and help me?’” says Hesser with a giggle. “I’ve coached a stir-fried beef with tangerine and green beans. The demographic he make a love of food seem OK and like a normal lot of people through cooking dramas.” appeals to most — the ladies — came in droves. They screamed and thing, like someone loving music.” She continues to write about food for the Times, some even cried. In Chicago, more than 450 mobbed Borders Books But beyond the anecdotes and recipes used in her selling anyone she can on the superior texture of for his appearance. “It’s amazing to hear applause while you’re good-humored defense of fine dining, during those chocolate mousse and the wonders of Meyer lemons, cooking. People come up afterward to say that they cook because of three years of courtship, Hesser, who joined the while testing recipes in the Brooklyn apartment she the show.” Times in 1997, was also searching for her own culi- and Friend share. In addition to launching a new show, “Tyler’s Ultimate,” on the nary identity. Recipes culled from off-duty foodie Still, while our man Tad may have gone gourmet, Food Network, he is also filming 65 new episodes of “Food 911.” At haunts like Pearl Oyster Bar, Blue Hill and Prune, it’s nice to know he’s been tamed, not broken. Just this rate, isn’t he in danger of burnout? “People get enjoyment out give the book an insider angle, but most dishes come the other day, he ordered a cookie with M & M’s of what I do,” he says, seemingly amazed by his celebrity, “so in via Hesser’s talented family members and her dozens baked into it. “I said, ‘You can’t have that,’” Hesser that way, it’s kind of rock-star like.” of friends — all sophisticated, witty and forever tuck- reports, beaming, “and he said, ‘Oh yes, I can!’” —Alison Oneacre ing into a fabulous meal. There’s Tama Janowitz’s — Jessica Kerwin County Fair

edia shy Charles Saatchi never showed up at the opening party for his County Hall art gallery Tuesday night in MLondon, but his girlfriend, Nigella Lawson, did. “I’m his living sacrifice,” said Lawson with a laugh before the party. Indeed, Lawson, cinched into a black Vivienne Westwood dress, was mobbed by photographers at the gallery’s entrance. Guests including Stella McCartney, Minnie Driver, Tracey Emin, Damien Hirst, Ivan Massow, Ilaria Bulgari, Jemma Kidd, Jeremy Irons, Jade Jagger, Jake and Dinos Chapman and Miranda Richardson wan- dered through the gallery’s wood-paneled rooms, chatted among Hirst’s dissected animals and followed their noses to Richard Wilson’s “20:50” — a smelly lake of used engine oil. Kidd said none of Saatchi’s artworks outshone her own jewels, a white gold and diamond necklace and bracelet by De Beers LV. “I saw some dead things over there, and I’m making my way around this amazing gallery. But truly, these jewels are the real works of art,” she deadpanned. Emin, whose “My Bed,” is on display in the rotunda with works by fellow Young British Artists, said she’s not bothered at all by the con- trast between County Hall’s stern Edwardian Baroque style and the YBA’s works — something that’s rankled more than one art critic. “I live in a Georgian house that’s over 200 years old. I don’t live Stella against a Philippe Starck backdrop,” said Emin. “My art is meant to be McCartney Jade Jagger Tracey Emin Nigella Lawson shown in a warm and comfortable environment.” SAATCHI OPENING BY TIM JENKINS, HESSER BY THOMAS IANNACCONE; BOOKS BY JOHN AQUINO JOHN BY BOOKS IANNACCONE; THOMAS BY HESSER JENKINS, TIM BY OPENING SAATCHI 7 Active Lifestyle THURSDAY,WWD, 2003 17, APRIL Chasing the Pack in NEW YORK — So much for the loneliness of Sport Psychology 101 long-distance runners. Adidas will host a series of lectures including Athletic companies will be out in force this the “Seven Stages of Marathon” over the week- weekend psyching up runners and fans for end at the Hynes Convention Center, the place Monday’s 107th running of the Boston Marathon, where runners pick up their race numbers. and picking up some customers along the way. Seven Stages, an outdoor and print advertising With 500,000 people expected to watch the campaign making its debut in Boston, will 20,000 runners on the 26.2 mile course, the address “ritual, shock, denial, isolation, event should boost Boston’s economy by $74.2 despair, affirmation and renewal.” Grete Waitz million, according to the Boston Athletic and Johnny Kelley, who has competed in 61 Association, the race organizer. As the official Boston Marathons, will offer their insights. sponsor, Adidas will outfit the race’s 7,000 vol- unteers and is the only brand allowed to sell Most Coveted Prize merchandise imprinted with the Boston For the first time, Adidas has designed official Marathon insignia. But Reebok, Puma and marathon jackets for women. Olympia Sports Nike are also busy making their presence in the Prudential Center will sell the $80 item known. In recent months, all four brands have and expects race day and the Tuesday after- renewed their pledge to running. Adidas debuts its Seven Stages of ward to be the busiest shopping days. Images Marathon ad campaign this weekend. from Adidas’ Seven Stages campaign are in its Most Likely to Be Seen Reebok will try to capture runners with store windows. “Everything we put out should Couch potatoes who live downtown will get a be sold. We’ll easily sell hundreds of units of text messages. Two runners will trek 26.2 glimpse of Reebok like it or not. marathon merchandise,” said Bryan For four consecutive nights starting Friday, miles on a treadmill at Puma’s store. McComish, store manager. Reebok will splash its logo in lights on the Prudential Tower, a 52-story building in the heart of Boston. Running in Place Most Likely to Call Time Out Light projections will illuminate different messages each Puma has arranged for a Puma-clad man and woman to Nike is encouraging fans to save some energy for a little night in an 80-by-80-foot area on the side of the “Pru,” which complete the distance of a marathon on treadmills in the shopping at Niketown. is also steps from the finish line. “Anyone Can Run a Mile. store window of its Newbury Street store. From Friday through Tuesday, there will be a run- It’s the Last 25.2 Miles That Matter,” and “Bibs? Carbs? The man will finish in time to get to the marathon ners’ lounge where marathoners can pick up pace Reeboks? Good Luck Runners” are among the messages. starting line and plans to finish the course. Puma’s ath- bracelets geared for the Boston course or to send e-post- letes will be logging miles for philanthropic purposes, cards with images of themselves. Free massages and Riding the Pain Train joining Ted Williams’ daughter running in Boston on product tips will be offered by running experts the day Terry Tate, the self-proclaimed “office linebacker” who Monday for charity. after the race at the lounge. won fans in Reebok commercials aired during the Super Legally blind runner Marla Runyan, who finished Bowl, and Reebok reps will be cheerleading fans and Running Cross Country fourth among the female pack in last year’s New York handing out temporary “Pain Train” face tattoos. If Tate Puma will be camped out on the course to kick off “Road City Marathon, and gold medalist and former Boston spots someone’s tattoo, that person takes home a free T- Trip,” its cross-country campaign touting its new running Marathon champion Joan Benoit Samuelson will also shirt or DVD. Runners, on the other hand, might not be line. The collection hits stores in July. Next stop, the stop at the store over the weekend for Q&A’s. so enthusiastic about seeing the Pain Train message. Rock-n-Roll Marathon in San Diego on June 1. — Rosemary Feitelberg 8

brand will compete with “the California megabrands” Heading South in the over-$100 denim market. Denim Dish The Montreal-based jeans company Manager is Wholesale prices on the jeans range from $40 to making a push into the U.S. market with a higher- $47.50, above the price of Manager’s main line, which priced line called Blue One. sells jeans for about $10 less a pair. The Blue One jeans The line, which launched in Canada last year, is are manufactured in Montreal and . Levi’s Denies Wrongdoing rolling out in the States for fall retailing, with initial Kohn last worked for another Canadian jeans Levi Strauss & Co. this week denied claims that it shipments targeted for June, according to North- maker, Parasuco Jeans Co. used irregular accounting to inflate profits. Those eastern sales manager Natalie Cole. Cole said the company hopes to do $1.5 million to $2 charges were made in a lawsuit filed against the compa- The line includes five fits of jeans, ranging from low- million in sales during its first year in the U.S. ny in California Superior Court in San Francisco by two rise boot cut to super-low flare, in eight denim washes “It’s easy to get the volume,” she said, “but we want former employees who had been fired in December. and in alternate fabrics, according to Cole. to get into the right stores.” She said the company will The employees are Thomas Schmidt, a tax attorney, Steve Kohn, the company’s Fort Lauderdale, Fla.- be targeting better specialty stores and boutiques. WWD, THURSDAY, APRIL 17, 2003 WWD, THURSDAY, and Robert Walsh, an accountant, according to filings based national sales manager, said he believes the — S.M. with the California court. They claim that they were fired for refusing to keep financial records from tax authorities and auditors. “The two former employees who filed the lawsuit were dismissed late last year for reasons completely Jeans for Other Womyn unrelated to the allegations made in their lawsuit,” After adding jeans to its Womyn sportswear line Phil Marineau, Levi’s president and chief executive last year, New York-based GM Design Group has officer, said in a statement. “Unfortunately, they have decided to break denim out on its own, in a spinoff chosen to respond to their dismissal by making false line called By Womyn. claims in litigation.” The jeans, which will wholesale for $64 to $74, are A Levi’s spokesman said the auditing committee of being launched for fall retailing. the company’s board ordered a complete investigation The Womyn line already sells in more than 900 into the claims when they were made last year, hiring specialty stores in the U.S., and jeans have come to outside auditors and legal counsel to ensure the review represent 20 percent of its volume, according to would be fair. He said that investigation found no evi- designer J.R. Morrissey. He said that breaking the dence of improper accounting. jeans out on their own may allow wider distribution. Levi’s added that Monday’s lawsuit came in connec- In addition, the company plans to move its jeans tion with an unlawful termination lawsuit filed by Younique is broadening its assortment of fabrics. production to Los Angeles to make it more efficient Schmidt and Walsh. The Levi’s spokesman declined to and able to reach the stores at a faster pace. say why the two men were terminated, citing privacy “The stores’ response to our denim coupled with concerns. Younique Shuffles Its Mix reorder demand on just a handful of styles was the Frank Bondonno of Popelka & Allard, the San Jose, With teens’ ardor for jeans fading after several driving force behind this new label and the compa- Calif.-based attorney representing the two men, did not years of strong demand, junior jeans resource ny’s focus on creating a denim line to fill the void,” respond to calls seeking comment. Younique Clothing is starting to soft pedal its denim said Jo Ann Langer, president and ceo of GM Design San Francisco-based Levi’s is privately owned, but assortment in favor of alternate fabrics. Group. reports its financial results because of public bonds. The In an interview, vice president Robert Regina Morrissey also designs the Womyn line that company has been in a sales slump since 1996, with sales called the change good “because there’s a chance to includes jeans, T- and jackets. He said the focus reaching $4.14 billion last year, as reported. The compa- work on new fabrics.” of the new label will be purely on denim pants to ny has been profitable through much of its sales decline, For fall, the company’s assortment of bottoms is expand distribution and brand recognition. though rising expenses and other costs related to its debt still heavy on denim, with that fabric representing “Womyn is recognized by the customer as an excel- drove the company $24.5 million into the red in its first about 60 percent of the assortment, he said. But, he lent-fitting pant and the Womyn label was designed to quarter, when sales slipped 6.4 percent. Levi’s execu- added, “by the third quarter, fourth quarter, it might emphasize that our jeans line will stay true to the tives have contended that this year will mark the end of be 50-50” or even inverted from its current level. brand focus,” said Morrissey. its sales decline, saying that growth in the second half Regina said he’s been surprised by the strong per- The company projects the line will bring in more will leave overall sales for the year up 2 to 5 percent. formance of nondenim fabrics in recent months, with than $6 million in 2004. — Scott Malone teens snapping up looks including colored pants — J.G. from Younique, which brings in annual sales of about $65 million. “There are times when I look at a garment and Whatever it Takes takes think, ‘Oh, my God, that’s not going to sell,’ and then it the stage at Express. takes off,” Regina admitted. He said the slow econo- my makes it more important for designers to intro- duce novelty styles for teens, to encourage them to keep spending. “When business gets tough, sometimes people want to go with the safe products,” he said. “But that’s not the right strategy with junior shoppers.” — S.M.

Express Tags Up Retail chain Express unveiled its 2003 denim collec- tion last week at an event with go-go dancers, DJ Spencer Product and a trio of Brooklyn-based electroclash singers called Whatever It Takes. Express, which operates 1,027 stores, held the event at the former Powder space in Manhattan’s Chelsea on April 8. Titled “Art From the Waist Down,” the party combined the talents of 21 artists, designers and photographers, who were commissioned to create hangtags for each denim style sold at Express. One is a working air freshener, anoth- er is shaped like a matchbook and features a foldout col- lage of images. The new dual-gender Express will intro- duce the hangtags in stores beginning early in July. Tags will be updated seasonally, as new denim styles are shipped to Express stores. Express denim from $45 to $200. Betsey Johnson and Damon Dash were seen mingling with members of the Express design team as well as other invited guests. When W.I.T. took the stage, dressed in Express denim miniskirts, guests were dancing to their tunes, which the group reworked to include the company’s Basic jeans are the name in the lyrics of one song. staple of By Womyn. — Julee Greenberg PHOTO BY STEVE EICHNER STEVE BY PHOTO 9 TheWWDList THURSDAY,WWD, 2003 17, APRIL

Drumroll, please. That Wal-Mart topped the list of most profitable apparel retailers in 2002 is hardly a surprise. The company’s value message resonated with consumers who continue to be Net Games preoccupied with the dismal U.S. economy and a host of global ills. The Bentonville, Ark.-based The most profitable apparel retailers of fiscal 2002, in descending behemoth dwarfs its nearest competition by nearly five to one. What’s more, Wal-Mart’s share order of net income, based on actual reported results, including all charges and credits. accounts for more than half — 51 percent — of the total from the group of 15. WAL-MART STORES INC. $8.04 billion Wal-Mart is in a retail league all its own. The Bentonville, Ark.-based discount titan grew profits faster than sales in 2002. Revenues reached nearly $250 billion aided by strong performances from Wal-Mart stores and the international division. The weak link in the company chain was Sam’s 1 Club, the warehouse club division.

TARGET CORP. $1.65 billion The Target discount division’s designer apparel offerings include Mossimo, Cherokee, Stephen Sprouse and Liz Lange for maternity. There are also home furnishings lines by Philippe Stark, Michael Graves and one called Swell, by Cynthia Rowley. The Minneapolis-based retailer managed to post 2 double-digit gains for the year, but Target remains under pressure from Wal-Mart and Kohl’s.

SEARS, ROEBUCK & CO. $1.37 billion While its credit card operations accounted for 15.4 percent of the company’s pre-tax profits, Sears nonetheless decided in March to sell the division and 3 focus on its ailing stores. Revenues for 2002 were ahead 10.3 percent to $43.92 billion, from $39.83 billion during the preceding year.

FEDERATED DEPARTMENT STORES $818 million Federated’s strategy of boosting private label assortments and consolidating some operations seems to be working to some extent. For 2002, reported net income rose to $4.12 a diluted share, from a loss of $276 million, or $1.38, in 2001. (The big swing was due to one-time charges related to 4 consolidation and the sell-off of Fingerhut.) Sales slid 1.4 percent to $15.44 billion from $15.65 billion in 2001, while comps were off 3 percent.

KOHL’S CORP. $643.4 million Kohl’s impressed Wall Street with a 29.8 percent rise in net income, to about $1.87 a diluted share, from $495.7 million, or $1 .45, in 2001. Sales for the year grew by 21.8 percent to $9.12 billion from $7.49 billion in 2001 and comps climbed 5.3 percent. But analysts are wondering what Kohl’s will do for 5 its second act now that other chains are copying its promotional strategy.

TJX COS. $578.4 million TJX Cos.’ Marmaxx unit, which includes Marshalls and T.J. Maxx, saw operating profits decline 15.8 percent to $208 million for the fourth quarter, which 6 pushed TJX’s profits into decline. The division’s sales inched up 4.1 percent to $2.7 billion, but comps were off 1 percent.

MAY DEPARTMENT STORES CO. $542 million It was a brutal year for department stores. May has tried to compete by focusing on younger customers with in-house brands, its bridal group and new store designs. Despite these efforts, May’s fourth-quarter profits dropped, bringing its string of quarterly declines to eight. Profits for 2002 fell 22.9 7 percent, to about $1.76 a diluted share, from $703 million, or $2.21, in 2001. Sales declined 2.8 percent to $13.49 billion and comps were off 5.3 percent.

LIMITED BRANDS INC. $501.7 million Bras and bikini briefs did better than apparel for Limited Brands in the fourth quarter. For 2002, net income sank 3.3 percent, to 96 cents a diluted share, 8 versus income of $518.9 million, or $1.19, in 2001. This year, the company will optimize its existing real estate rather than open new stores.

GAP INC. $477.5 million Now under the stewardship of Paul Pressler, Gap raised waistlines in the fourth quarter and got a rise out of its earnings. For 2002, Gap reported earnings of 54 cents a diluted share, compared with a loss in the prior year of $7.8 million, or 1 cent. Sales rose 4.4 percent to $14.45 billion, versus sales 9 of $13.85 billion in 2001, but fell 3 percent on a comp basis. J.C. PENNEY CO. $405 million Allen Questrom’s golden touch worked well for Penney’s last year, and he received high marks from Wall Street for improving the chain’s assortments and marketing, and instituting cost savings. For the fiscal year, Penney’s net income rose a stunning 313.3 percent, to $1.25 a diluted share. Total 10 company sales rose 1.1 percent to $32.35 billion from $32 billion a year ago. Penney’s still faces challenges with its Eckerd drugstore division and certain merchandising issues.

ROSS STORES $201.2 million Benefiting from consumers’ preoccupation with value, Newark, Calif.-based off-pricer Ross Stores’ 2002 income jumped 29.8 percent, to $2.52 a diluted 11 share, versus income of $155 million, or $1.91, in 2001. Sales rose 18.2 percent to $3.53 billion over 2001 sales of $2.99 billion, with comps up 7 percent.

ABERCROMBIE & FITCH $194 million Attention to expense detail allowed Abercrombie & Fitch to report double-digit earnings increases and stellar margins for the fourth quarter and year, despite nearly three years of decreasing same-store sales. For 2002, income rose 15.6 percent, to $1.94 a diluted share, versus 2001 earnings of $168.7 12 million, or $1.65. Sales rose 16.9 percent to $1.60 billion from sales of $1.37 billion in 2001, but slipped 5 percent on a comp basis.

TALBOTS $120.8 million Talbots has the unenviable task of updating its fashion without alienating its core customer, who is nothing if not traditional. For 2002, income tapered off 4.9 percent, to $2.01 a diluted share, versus income of $127 million in 2001. Sales fell 1.1 percent to $1.59 billion from $1.61 billion, while comps declined 13 6.6 percent.

NEIMAN MARCUS GROUP $99.6 million The anemic economy and inclement weather prompted NMG to lower its comp-store sales increases for the third quarter to be in a range of down 1 percent to up 1 percent. It originally called for increases of 2 to 4 percent. NMG is postponing new store openings until 2005. For the most recent six 14 months, income increased 29 percent to $61 million, or $1.28 a share, versus income in 2001 of $47.3 million, or $1. Sales grew 5.2 percent to $1.67 billion, compared with $1.59 billion. (NMG is on a fiscal calendar that ends in August.) NORDSTROM INC. $90.2 million Nordstrom regained lost ground in sales by focusing on its core merchandise strategy of providing a balanced and differentiated wardrobe organized by lifestyle, not brands. Excluding charges, fiscal 2002 earnings were $161.3 million, or $1.19, respectively, against 2001 earnings of $124.7 million, or 93 15 cents. Sales rose 6.1 percent to $5.98 billion over 2001 sales of $5.63 billion and increased 1.4 percent on a comp basis.

SOURCE: COMPANY REPORTS 10 Contemporary Report Juicy’s New Squeeze: Claiborne

By Rose Apodaca Jones Pam Skaist-Levy and Gela Taylor: the brains behind Juicy Couture. LOS ANGELES — Today marks one month since Juicy Couture became the latest member of Liz Claiborne Inc.’s

WWD, THURSDAY, APRIL 17, 2003 WWD, THURSDAY, fast-expanding portfolio, and the founding pair who revolu- tionized the track suit — and the very idea of casual luxury — are sitting pretty inside their headquarters 30 minutes north of Los Angeles proper, in the dusty, industrial area of Arleta. Pam Skaist-Levy and Gela Taylor, who remain co-presi- dents with Claiborne’s 100 percent acquisition of the six- year-old company, which tallied 2002 sales of $47 million, talk with a headiness of the latest turn in their lives. The two are juggling media inquiries, considering appoint- ments with licensees and reviewing everything from sneakers and scents to hosting their own TV show as their cult brand begins to evolve into a global lifestyle power- house under the auspices and clout of Liz Claiborne. “When most businesses get ready to sell, they just want to pocket the cash and move on to something else,” Taylor said. “We got to a point with all these things we started adding to our line, from flip-flops to fur parkas, and we just wanted a sugar daddy to help finance what we want to do,” picked up Skaist-Levy, the thought, as the two are wont to do. “And that sugar daddy is Paul Charron,” they simultane- ously declare of Claiborne’s chairman and chief executive of- ficer, who made Travis Jeans Inc., Skaist-Levy’s and Taylor’s founding company that owns the assets to Juicy Couture, number 31 in Claiborne’s relentlessly growing empire. Analysts, including Wells Fargo Securities’ Jennifer Black, are estimating the deal to total no more than $98 mil- lion, according to an initial cash payment Claiborne made of $39 million, including assumption of a $4 million debt for its acquisition of Travis Jeans Inc., according to a Form 8-K filed April 9 with the Securities and Exchange Commission. Yet Juicy’s camp is pushing the figure higher. “Our sense is it will be in excess of $100 million over- all,” said Mark Vidergauz, managing director for the Sage Group, which brokered the deal on Travis’ behalf. “That’s $50 million up front, and the $50 million to $70 PHOTO BY MICHAEL COMTE MICHAEL BY PHOTO

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million on the back end. There’s no cap, so really the “The fact that everything’s going to get done on time “I wear Juicy all the time because it’s good for every- sky’s the limit.” is huge,” said John Eshaya, women’s buyer for Ron thing, in sneakers or high heels. It’s my uniform,” said Claiborne also indicated the purchase price for Herman-Fred Segal and one of the first to carry Juicy. rap star Eve last week, who recently announced plans Travis Jeans requires a contingent payment equal to 30 “If anything, the deal helps improve the line and deliv- for her own apparel line. percent of Juicy’s equity value to be determined as a eries — not that I’ve ever had issues with deliveries.” “The tracksuit isn’t going away,” said retailer Ross. multiple of its earnings for 2005, 2006 or 2007. Either Yet even with preferential treatment, delivered or- ‘Even separate pieces are being worn with a Chanel party has the option to select the measurement year for ders usually don’t fulfill the demand. jacket or mixed up in other ways.” the contingent payment, yet if 2005 is selected, “We never have enough Juicy,” said Erica Berge, owner Today, women’s accounts for 90 percent of sales, with Claiborne expects the contingent payment will be $45 of Erica D in Corona del Mar, Calif., who reports 100 per- the remaining 8 percent in men’s and 2 percent of baby million to $55 million. Juicy is expected to realize ac- cent sell-throughs and an ongoing waiting list. “If I had an business seen as potentially lucrative arenas. Down Dog cretive earnings per share by some 2 cents in the third entire store of nothing but Juicy, I’d do really well.” Couture Yoga launched this past February at a house and fourth quarters of 2003. Cosmetics, fragrance, footwear, handbags and the party attended by Debra Messing, Rebecca Romijn- Ellen Tracy, Lucky Brand, Sigrid Olsen and Laundry first namesake boutique top Juicy’s short list in the Stamos, Brooke Shields, Jessica Capshaw and many are among the brand acquisitions Claiborne has made coming months. With the licensees will come increased other celebrity fans. with department store distribution since its spree began production overseas and not “Made in the Glamorous “Is going with LCI and growing going to get more dif- in 1999. Its moderate lines such as Axcess and Russ sell U.S.A.” which has been a boast on hangtags — until re- ficult to design and keep up?” asked Skaist-Levy. (She at Kohl’s, Wal-Mart and other chains. cently, with the “huge” cashmere production in China. and Taylor insist on hipping up the Claiborne name by Such diversification has contributed to the company's “We will keep doing as much as we can locally,” said rechristening the company LCI.) “We don’t think so. We 28-consecutive quarters of sales growth. Fourth-quarter Taylor. design what we want and that’s never going to change.” net income rose 40 percent to $58 million on sales of $994 Juicy has a staff of 200 in its already squeezed 27,000- Taylor added: “A challenge for us will be keeping the million. Claiborne's 2002 sales were up 11.1 percent to square-foot headquarters. department stores at bay. We don’t want to see a sea of $3.45 billion, while income rose 4 percent to $192.1 million. The pair envision a world of goods that will eventual- Juicy everywhere as we grow. We have great partnerships “The mantra internally is business as usual,” said Angela ly include a home collection. Skaist-Levy already has at many department stores, but we’re also very boutique Ahrendts, Liz Claiborne Inc. executive vice president and begun designing furniture for her own house, which she driven. It’s going to be about keeping the department group president for the firm’s modern brands. “Any time we shares with her husband, producer-director Jeff, and stores happy and making sure our vision is there.” do an acquisition of this type, it’s not about buying some- their two-year-old son, Noah. They consider the flood of tracksuits by other brands thing because it’s broken. They have an unbelievable vision While studying at the Fashion Institute of Design & good for business, even “validating the category,” noted and have filled a great niche in the market. One of the Merchandising here, Skaist-Levy turned a millinery Skaist-Levy. After all, even J.Lo has been widely pho- biggest problems up to this point is supplying the demand. project into a line called Helmet, which sold briefly at tographed wearing Juicy, although her Hilfiger-backed But the goal is not to overdistribute Juicy in America.” Barneys New York and Fred Segal. Meanwhile, Taylor brand offers its own version. In the U.S., Juicy is sold in 840 specialty stores, from got her drama degree at Carnegie Mellon University in Despite market trends toward catering to a plus-size Fred Segal in Los Angeles to Scoop in New York, and 280 Pittsburgh, followed by roles in the original Broadway youth customer, Juicy only recently inched up to a size 8 and department stores, including Bloomingdale’s, Neiman production of “Zoot Suit,” and later to TV with “Taxi,” is reluctantly considering a 10 to quiet retailer requests. Marcus, Bergdorf Goodman and Barneys. Europe, which “Hill Street Blues” and other shows. Skaist-Levy said, “We have no interest in doing the accounts for 8 percent of the company’s total sales, recent- They met in 1994 at friend Tracey Ross’ Sunset Plaza teen or tween market. We want to remain aspirational. ly had the opening of a Juicy boutique in London’s Harvey shop and soon hooked up to launch a maternity jeans Those little girls have to grow up to be able to have Juicy Nichols. The remaining 7 percent of nondomestic sales is line named Travis Jeans, after Taylor’s son, the first of or steal it from mom. It was never geared toward them. split between Canada with 5 percent and Asia with 2. her three children. In 1996, they transitioned into curvy Gela and I are really petite, so we made small clothes.” “The number one issue has been getting a great flow V-neck T-shirts and launched Juicy Couture. Juicy Jeans Still, they are aware that teens are shelling out $140 of goods on a timely basis,” said Ahrendts. “If we just followed in 1999, with Taylor’s husband, John, and his for their terry tracksuits, or $130 for their jeans. fulfill the demand alone, you can imagine the growth. At seminal band, Duran Duran, reuniting for the launch The pair, along with their new parent, are also doing their current speed, it’s feasible they can double their party, which attracted Hollywood’s A-listers who’ve some aspiring of their own. business in a year and that has nothing to do with boosted the phenomenon of the brand. “The world, even Seventh Avenue, is interested in [Claiborne] at all.” But it wasn’t until spring 2001 that the look that the casual chic of West Coast style, Taylor said. “We Retailers are looking forward to guaranteed deliver- would launch a cult bowed. The idea behind the track- want Juicy to become the next big American brand.” ies and a wider array of Juicy product. suit was chic comfort.

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new york showroom: 80w 40th st, 10th floor new york, ny 10018 212-764-3745 12 WWD, THURSDAY, APRIL 17, 2003 has a“hugepotential.” said, he that, brand a Industrie, YorkNew expand and velop de- will company the confident was he said and dynamism,” and know-how,flexibility standing collection. of thedesigner’s vision makesupabout35percent di- knitwear The collection. 2004 spring-summer the with starting division, knitwear Margiela’s distributing and producing start hind it,”saidRosso. be- beats that heart and father years ago. two lines women’s and men’s Squared D their distribute and produce to Caten Dean and Dan with agreement 10-year a signed and fall last Margiela trol con- took interview.Diesel an in Rosso, Renzo owner Diesel said businesses,” those building on focus should it that and cense, li- Squared D the and brand Margiela Martin the with full collection. 2004 spring-summer the with ing start- women and men for label YorkIndustrie New the of tion distribu- and production design, over take will brands, Enigma and Cividini the distributes and produces which Italy.McAdams, Vicenza, outside based wear knit- in specializing company a McAdams, to brand Industrie YorkNew its sell to agreement an signed has division national IA — MILAN Diesel Sells New York Industrie Gioacchino Longo, president Longo, Gioacchino “out- McAdams’ cited Rosso will McAdams said also Rosso own its “Now,has brand each hands its has Staff think “I Diesel’s Staff Inter- Staff Diesel’s For more information, contact Ralph Erardy, Ralph Forcontact representative.VP,information, moresales Senior WWD your or 212-630-4589, at Publisher Group and the attitudes that drive consumer spending. This is a must read section for every Keep pace with this ever-changing market and LagerfeldGallery. WestwoodVivienne StyleLab, Diesel produces also Vicenza, easy-to-wear,” saidRosso. casual, and comfortable of tality men- my with line in more tion, collec- ready-to-wear young a as sign theline. de- to Murkudis Kostas designer Greek-German the tapping label, YorkIndustrie New the tained main- Rosso Gym, brand owned the suppressed and Freud Bella and Ungaro Tayama, Atsuro Ferragamo,Salvatore Schön, Mila with licenses the nated termi- he While 2000. in national million. $6 current the from million $25 about to brand the of sales grow to wants he seasons, five in said He Longo. said market,” the of range medium-high-end the in customer 45-year-old to 30- a consumer targetandpricerange. its streamlining and world the around line the distributing on Borgofiori line. Marzotto’s designed last Biani splits. lateral with and ankles the at tight women, for designed re- model men’s a pants, Beirut launching and twist androgynous was launchedin1977,givingitan it when line the designed inally orig- Biani Yorkbrand. Industrie New the design to Biani tapped Alberto has he that terview in- phone a in said McAdams, of retail decision maker and marketer trying to reach the youth market. Staff International, based in based International, Staff line the redefined “Murkudis Inter- Staff acquired Rosso at aimed be should line “The focus to wanted he said Longo delivering market intelligence on the culture, the trends, the music Flash reports on juniors, denim and urban six times a year, — Luisa Zargani Section II: June 5 son of LVMH Moët Hennessy Moët LVMH of son never doit.’” She’ll line. clothing own her has she perfume, own her has She happen. never ‘That’ll said, and tremely hardtoresist. ex- find I that quality star this got She’s [Affleck]. Ben with ship relation- her about something There’s songs. her love I dances. she way the moves, she way the love I glamour. her There’s it. of all through cutting That’s her.love just I Lopez. Jennifer use to wanted I said “I said. Jacobs figure,” pop a sort, ferent dif- a of artist an with collaborate Takashi Murakami. artist Japanese with cessories ac- spring for one successful a finished just having artists, with collaborating of theme his tinue con- to wanted he said director creative Vuitton the campaign, next the about team his with ing brainstorm- When fortune. good el. Shewasunbelievable.” supermod- this became day.“She Wednes-said Jacobs ‘Showtime,’” like was It shoot. this to gave to premiereinAugust magazines. slated is and week last here ing Vuitton,shoot- up wrapped which Louis for campaign advertising 2003 fall the of star the scribes dable résumé:model. formi- already Lopez’s Jennifer — PARIS Jennifer Lopez Keeps Plugging WWD Flash Close: May 19 Enter Antoine Arnault, the Arnault, Antoine Enter around sat all we then “But to great be would it thought “I his believe can’t Jacobs And she much how you tell can’t “I de- Jacobs Marc how That’s MediaWorldwide d aohr aet to talent another Add ages.” im- iconic strong, just They’re ic. graph- very and powerful “sexy, as them described Jacobs but weeks, several for approved be won’t and edited and retouched collection inatotallynewlight. the casts and references retro no has Pigott, Marcus and Alas Mert by shot campaign, the said Jacobs runway,Vuitton the on erences striking fashionmodel.” incredibly an like looks She ent. pres- or past movies, other her of any in or Manhattan’ in ‘Maid in or ads perfume her in looks she way the not and sophisticated, and stylish extremely looks She part. a playing her about really was It need. don’t we that cause be- endorsement celebrity a n’t was- it “And said. Jacobs goods,” Frenchluxury do doesn’t She ing tonewgenerations. speak- while status, iconic its to true remain must which Vuitton, at boundaries the push to tant impor- it he that added and entanglements, fashion other has Lopez that fact the about tions Her feewasnotdisclosed. accepted. Lopez and manager her contacted Arnault young the said Jacobs Herzigova. Eva model starring campaign, spring popular the on worked had and team Vuitton’scommunications joined recently who Arnault, Bernard chairman Vuitton Louis Affleck appeared on the set the on appeared Affleck being still are pictures The ref- Sixties spied some While competition. it’s think don’t “I reserva- no had he said Jacobs fun I’veeverhadonashoot.” most the was knew.It she songs to sang she and course, of music, was “There said. Jacobs set,” the on Lopez. shoes andmen’s wear. to bags and ready-to-wear from products, Vuitton of range the showcases and models male two features also campaign The era. cam- the of front in not but shoot, four-daythe during times several Lopez Jennifer Lopez Jennifer Tee a a ely ra vibe great really a was “There to belonged spotlight the But — Miles Socha 13 WWD, THURSDAY, APRIL 17, 2003 — Nola Sarkisian-Miller Nola — ” The surfwear industry also Spreading the word is a chal- McKnight was bullish on the “She tells me that she’s work- Cash for the deal was fi- Moody’s noted a timing mis- “The acquisition cost in- PVH’s new rating, said those players like Hollister, Old Navy and private label programs that are the real competition.” lives and eats well. Over pan- seared sea bass salad and filet mignon, Otis officials, including president Samuel Hoi Rosemary and founding Brantley, chair of the 23-year-old fashion design program, promoted the merits of the program and its strong slew of students for in- ternships and entry-level design jobs. Three students also of- fered examples of their sketches and showcased their swim and wear designs on models. men’s lenge for the four-year fashion design program at the downtown Los Angeles school. In the past decade, it has graduated 350 stu- dents — not exactly a vast pool of alumni to help with job place- ment. But the program is grow- ing, and boasts 80 students for fall, according to Marianne Hudz, Otis’ director of career services. school, since his 19-year-old daughter attends and comes home on weekends full of stories. ing hard, juggling multiple as- signments, and I’m like, ‘Thank God,’” he said, noting that a number of Quiksilver’s employ- ees hail from Otis. lion in cash, $30 million in PVH stock, a nine-year war- rant to Klein to purchase PVH shares and contingent pay- ments to the designer for 15 years based on sales of Calvin Klein branded products. nanced through a $250 million convertible preferred stock is- suance to Apax Managers Inc. and a $125 million two-year se- cured loan from the same. Apax will control 33 percent of the voting shares of PVH. match between the potential cash growth for PVH from CKI versus the cash outflow relat- ed to the acquisition financing. creases leverage on a cash basis and causes a cash drain due to the substantial contin- gent purchase price payments and a minimal intermediate term consulting agreement Klein,” said Moody’s. with Mr. Moody’s, also recognizes “signif- icant opportunities for revenue and margin enhancements for PVH from the Calvin Klein brand via increased licensing revenue, sub-branding, expert- ise in the women’s market and potential cost savings within the Calvin Klein infrastructure.” Phillips-Van — Sean Smith, Surf Industry Manufacturers Association SurfIndustryManufacturers Smith, Sean — Moody’s Investors Service Moody’s dropped PVH’s Additionally, the senior un- Moody’s rated PVH’s debt “The downgrade reflects In PVH February, complet- Four years ago, if you said there was there said you if ago, years Four Quiksilver chairman and ceo It was testament to how much Surprisingly, these surf lead- By Evan Clark Evan By NEW YORK — Heusen Corp. might have scored a crown jewel in Calvin Klein Inc., but the long-term gain has a short-term cost. took its rating on PVH’s debt down two notches Wednesday, tag. price given the acquisition’s senior implied debt rating to “B1” from “Ba2,” leaving the measure four notches into sub- par or “junk” territory. secured issuer rating was low- ered to “B2” from “Ba3;” the rating on $100 million in senior secured debentures due 2023 was cut to “B1” from “Ba2,” and $150 million in senior sub- ordinated notes due 2008 were lowered to “B3” from “Ba3.” outlook as stable. the negative impact on PVH’s cash flow resulting from the significant purchase price for the CKI acquisition, which in- creased leverage, inclusive of leases and preferred stock,” said Moody’s in a statement. ed the nearly $600 million deal, which included $400 mil- Moody’s Lowers PVH Rating PVH Lowers Moody’s Buy Klein Calvin of Heels On Surf Execs Get Together Get Execs Surf Awareness Otis Raise To HUNTINGTON BEACH, Calif. — “This is as close to the Last Supper as you can get,” quipped Ocean Pacific Apparel chief ex- ecutive Dick Baker, remarking on the number of surfwear ex- ecutives gathered in the name of education. Bob McKnight hosted the who’s who dinner at his company head- quarters last week, recruiting Hurley International president Bob Pacific Hurley, Sunwear president Tim Harmon, Billabong USA president Paul Naudé, Lost Enterprises ceo Joel Cooper, “ Stussy president Sinatra Frank and Lunada Bay ceo and presi- dent Susan Crank, among others, to learn of the resources at Otis School of Art and Design, most the fashion program. notably, the industry has come of age, ac- cording to Manufacturers Association pres- Surf ident Industry Sean Smith. “Four years ago, if you said there was going to be such a everyonedinner, would have scoffed at it. But these now, kind of things are taken seriously.” view themselves ers as don’t arch rivals, but a rather, cohesive bunch fighting the retail estab- lishment. work “We together and surf together and support one McKnight another,” said. “It’s going to be such a dinner, everyone dinner, a such be to going it. at scoffed have would spring 2003. … and not be reached on business to the designer. reportedly sold his share Barron left the firm in 2000 Jones predicted trade from Cass Johnson, associate vice “If these numbers are accu- U.S. negotiators have had an The Bush administration in a Leonard, addressing the con- “There were a lot of categories secondary brand called 2 by Katayone Adeli to cater to more customers. and in the She could Wednesday. and domestic textile and import trade and lobby groups, who up the pressure. have stepped Vietnam will embargo “well be- fore the end of the year,” based on the preliminary information. president of international trade at the Manufacturers Institute, said he American would be “astonished” Textile if Jones’ numbers in cotton knit tops and cotton trousers were accurate. rate, it’s going to be extremely costly to workers in this country,” said Johnson. “[Importers] are talking about shaving a quarter off the price of a pair of pants and we are talking about closing mills and laying off thousands of workers.” extremely tough balancing act in these negotiations. deal in 2001 to garner enough House votes to renew the presi- dent’s trade promotion authority, agreed to help domestic mills better compete with foreign sup- pliers. But the interest of im- porters and retailers must also be taken into account. cerns of importers, said they have known all along apparel and textile categories would be controlled by quotas. [importers] did not want covered but some of those are going to be covered,” said Leonard. “That should not be a surprise. The sur- prise may be the level but those categories that have been cov- be a surprise.” ered shouldn’t 2003… from fall Adeli look A Katayone Meanwhile, importers made that “Arguments Vietnam is The USA-ITA claimed, in the Leonard declined to confirm In any case, until the negotia- time you have a negotia- “Any The quota issue has caused a come a signature of New York’s downtown designer scene, which was then dominated by her retail neighbor Daryl K. As her prices also steadily in- creased into designer territory, Adeli spun off two additional lines, a jeans collection and a the issues are,” said Leonard. “I don’t think there are any major [outstanding] problems, but we just want to make sure we are we agreed upon.” clear on what a final push in a letter to U.S. Trade Representative Robert Zoellick late to Wednesday in- crease quota levels on two high- volume import categories: cot- ton knit shirts and cotton knit trousers and shorts. being offered large quota levels on [cotton] knit shirts and [cot- ton] pants are disingenuous and illusory,” claimed Laura Jones, executive director of the U.S. Association of Importers of and Apparel. Textiles to letter, have learned that the U.S. had offered quotas of 14 mil- lion dozen cotton knit shirts a year and 7 million dozen cotton trousers and shorts a Representatives year. of the USA-ITA were not present at the negotia- tions and the importers’ group did not say how it had obtained those numbers. the numbers. Members of the Vietnamese delegation could not be reached. tors sign off on a final agreement, the quota amounts could change. tion, you have misunderstand- ings and I want to make sure it is all squared he away,” said. “Plus, I am going to take enough flak once it is announced.” rift between U.S. negotiators not be Jim Leonard The U.S. and ture the busi- Adeli hopes to Katayone Katayone Adeli is ess and her Bond

She started the business with Adeli launched her business A spokeswoman for the de- “We are “We talking about [quota] Leonard, reached by phone Sean Barron, who had been president of Parallel, and was quickly championed by retailers and Fred like Barneys New York Segal, building a volume of about $3 million the first year. Within a few years, or by the time she opened the Street Bond shop in 2000, her volume had mushroomed to about $20 million, largely driven by the low-slung pants that had be- be able to restruc ness, but that it would in November 1996 after design- ing the Los Angeles contempo- rary sportswear collection Parallel, which had become a big retail success under her di- rection with sales of about $25 million at the time. Under her own label, Adeli initially target- ed a hybrid of the contemporary and bridge markets, but with a designer-minded product that often crossed into the higher realms of sportswear pricing. signer confirmed that Adeli would close her six-year-old sig- nature busin Street store, but could not pro- vide further details on Wed- nesday. She said possible for the designer to com- plete the orders she received for fall and that some of her staff was being let go this week. shutting down, at least for now. By Eric Wilson Eric By NEW YORK — Katayone Adeli Shuttering House Shuttering KatayoneAdeli numbers, text, circumvention, market access and labor issues, and we just want to make sure we have a clear understanding with the Vietnamese on what Wednesday at Wednesday the end of the sixth day of negotiations, said the deal covers a number of cat- egories but he refused to say how many and at what levels the quotas have been set.

By Kristi Ellis Kristi By WASHINGTON — Vietnam reached a tentative agreement on a quota-setting bi- lateral textile and apparel pact and Wednesday officials will continue to work out the final details today, according to Jim Leonard, deputy assistant secre- tary of textiles, apparel and con- sumer goods industries at the U.S. Commerce Department. Vietnam Agreement Reached Agreement Vietnam 14 WWD, THURSDAY, APRIL 17, 2003 PROFESSIONAL RESUMES,INC. Prime ManhattanJon212-268-8043 ls ulcts atrs ulservice Full shop tothetrade.Finefastwork. patterns. duplicates, ples, Sam- productions. small in Specializing RESUMES THATWORK!SINCE1970 *20 YearsIndustryExp.&Connections 14-59 St/Mad-9Ave.;1500-10000SqFt&up All lines,Anystyles.FineFastService. *Product Development & Private Label 212-629-8694 M-F10am-6pm.NoFee. in 24hrs.Localdelivery,pick&pack,etc. 800-451-8625 orwww.aitftrucking.com BWAY 7THAVESIDESTREETS Cutting &FusingWtd. Warehouse &DistributionCtr. sign &fabric.Fastwork.212-714-2186 Office/Showrm-Great Deals! We arenicepeopletodealwith BERNSTEIN R.E.-largest#NYClistings 1 BRSHOWROOMstartingat$1625. Allan Gallawa PATTERNS, SAMPLES, Professional andexperienced,size8. Tel: 214-772-9033/Fax:214-772-9021 High qlty,reasonableprice.Anyde- Helmsley-Spear, Inc. Also HBAandGeneralMerchandise. PATTERNS/SAMPLES WE HAVEINSTANTMONEY Hi Ceils.WdFlrs.ImmedOccup. Call Rocky800-762-5488 PTTNS/SMPLS/PROD P.S. LargePieceGoodDeals Showrooms &Lofts Hot Lofts-LowPrices,AllSizes 1500, 2200,3500,8500-TowerFl MANUFACTURING &SALES Great ’New’OfficeSpaceAvail Specs andclientlistavailable. Visit: www.anastasialand.com For SpaceinGarmentCenter www.resumesforfashion.com 60 E42ndStreet,NYC10165 New HiCeilingInstallations ADAMS &CO.212-679-5500 Updating/Phone Interviews (212)697-1282/(800)221-4425 B’way+7th AveSUBLETS 488 7thAvenue FIT MODEL Please call:(973)589-6116 Women’s &Children’s Call Sherr PRODUCTIONS AITF TRUCKING PRODUCTION *Catalogue Specialist CLOSE OUTS 40 yearsinbusiness. Call: (646)2457317 Live/Work We BuyMen’s, 212-880-0414 All Quantities 212-869-2699 ALL TYPES y 212-594-1414x251 y 212-719-0622. NY/NJ/LI

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Positionoffersbenefits. skilled thrive modern tech a strong and seeks a be have design, background, possess mfr to exp. approach must years sweater 4-5 Candidate with designer label energetic Private Fax: [email protected]; 212-736-5839 attn:HumanResources. Illustrator. and E-mail: Express Quark in pro- ficient com- be graphi Must and essential. Organization catalogues skills munication detailed on sheets. work line and freelance seeks for artist co. Leading experience. quality/compliance Please forwardresume/salaryhistoryto negotiation have contract and Must selection, mfr. factory for sleepwear Manager children’s Sourcing Global Seeking ASSOCIATE DESIGNER Apparel Staffin Executive AsstTo$45 1)Traffic Coordinator2)TechnicalDesigners Call (212)643-8090orfax:643-8127(agc 3)Production Coords/Assts4)ArtistsBoy-Girl Height: 5’8",Bust:33,Waist:261/2,Hip:35 APPAREL STAFFING Please faxspecsheetto:212-674-1617 KNITWEAR DESIGNER Fax resumetoDiana@646-366-1968 mn Since1967 dmin Fax resumetoJune@646-366-1970 FIT MODEL-SIZE4 Global SourcingManager TECHNICAL DESIGNER Contemporary LadiesSportswear. Mjr SportswearMfr.ImmedHire GRAPHIC ARTIST For ImportSweaterCo. Minimum 3-5yearsexperience. Please faxresume:212-302-6527 FAX RESUMETO212-967-8108 ADMIN*TECH*PRODUCTION DESIGN ASSISTANT Email: [email protected] MERCHANDISER DESIGN*SALES*MERCH 212-481-7498 Attn:Rosie W-I-N-S-T-O-N Fax: 312-525-2711 Designer -Sportswear APPAREL JOBS FREELANCE ARTIST g, Ltd.Fax(212)302-1161 specs. K y c ) r / : oigQC S EDI & ASN Q/C. toring n oe arc swl scomplete knit as well of our as knowledge ofgarmentconstruction. handling fabrics should woven in join and Candidate knowledge to have team. Patternmaker Production highly seeks skilled Mfr sportswear moderate W ment. Faxres.&sal.req’s han placing orders, vendors, -tracking domestic & factories seas org. & player. exp’d team needs mfr. access. 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East fabric/trim & working Far up entry ment, follow data & hard seeks delivery, trace to co organized, indiv apparel detailed, intimate Midtown written, Exlnt office. LA v fashion exp’d for sks publicist agency "style" Small PUBLIC RELATIONS Purchasing Coordinator 212-302-7732 /dann ra n a klsams.Begin- must. a skills Mac and erbal t rfsinlapaac manner. & appearance professional ith agttenx o rnswt the with trends hot will next that the products the target select have to must talent candidates Ideal aktr eofracompetitive a direct offer We & marketer. Generation mediaco. leading Y-focused a Inc., market Alloy Juniors experience preferred. exp swimwear. or and/ have outerwear, sweaters, buying Must 3 environment. store department specialty or of a catalog in store, minimum exp buying of a years candidates have Qualified should market. 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[email protected] Fax resume:(323)665-9401 SPEC TECH or fax:212-244-4311 Email Resumeto: Technical BUYER Designer y to: µ PrivateLabel 212-760-0223 212-689-7455 y @max10.com raie n ealoine.Salary well oriented. store, merchandiser be seeks detail package commensuratewithexperience. mass dept and must sweater organized domestic or Candidate strong co., aggressive relationships. store and with sweater specialty experienced, junior salesperson import leading an a both G.A.S., exp. Extremely organized&detailoriented. Outlook/Excel/Word comments. fitting & grading, Specing, prod’n. overseas W ae nN ihmngmn exp. indi- for management Pro opportunity v with Sales growth Sr. NY Exciting seeks in Co. based Swim & Surf salary & resume learning Fax Great requirements to:212-213-5281 are do! We we what opportunity. sales. at best field cus- the and for sales, service Professional tomer showroom Sales talented telemarketing, skil- & seeks Co led Accessory Designer Top benefits company & aggressive, commissions against line, w salesperson missy independent experienced, Updated experi- years 5 Min department ence. Faxresume&salaryhistoryto: stores. sell talented chain to and and professional skilled sales seeks Kellwood of Company division Dress Harbor Sag departmen in compan & specialtystores. following strong person w/ sales Knitwear contemporary seeks experienced Contemporary in contacts missy mkt.FaxresumetoJamie(VP)at: motivated, with self individual working, enthusiastic hard a is division seeking missy young branded Est’d., Email: or Ave 206-749-9699 Madison [email protected] Fax: flagship for store. mgr exp. retail seeks clothier children’s High-end netv lsbnft.Emi e.& res. E-mail and sal. histor benefits. sales plus salary, incentive Excellent immediate accts. national who deliver generate stores specialty can and department etridpnet n aos Dra majors. and independents better a euew oe etrand letter cover w/ resume requirements to:212-624-0520 Fax Salary +Commission EXCITING OPPORTUNITY market required.Faxresume:212-253-7802 Sales Professional Surf &SwimSalesExec Technical Designer da ihetbihdcnat at contacts established with idual Fax resumetoS.C.@(212)302-3872 [email protected] EOE Experience &contactsincontemporary t eiibebo fcnat for contacts of book verifiable ith t atrmkn x. oe’ wear women’s exp., patternmaking ith SALES EXECUTIVE SALES EXECUTIVE xeine nJno enwa aktadhv solid have compensation, and Excellent be accounts. market Must bonus packageandbenefits. major jeanswear Executive. with Account Junior relationships based in York experienced New seekinga is Jeanswear, VF Fax resumeto:Donald212-382-2549 or email:info@alvinvalle Fax resumeto:(212)268-4442 SALESPERSON ALVIN VALLEY RETAIL MANAGER Eric Javits,Inc. flora andhenri (212) 398-5464oremail y to:hiredem@ 212-840-5047 Please faxresumeto:(212)575-7976 ACCOUNT EXECUTIVE VF JEANSWEAR thelargestjeanswearcompanyinU.S. y ahoo.com y .com w y t . TION, ACCOUNTING,TECHNICALetc.staff? tdprmn,seily hi dis- junior & chain in count stores.CallAllison212-535-1553 specialty, department, with experience contacts at est’d years Have aggressive market. sportswear 10 and over working Hard to Please trend proficient. from call forresume:917-601-2793 Mac years sales. field to 10 the sourcing Over in position. experience F/T and a California seeking to Relocating Goods/Textiles Clothing. Leather in Background BOU- / Fax: [email protected] 845.687.4441 Tel: SPECIALTY FOLLOWING. poten- STRONG TIQUE $ for Great avail. tial Mf territories Cloth key has Fiber Natural Sophisticated Sales Reps*EarthSpeaks The SalesProYouNeed! **CALL 973-564-9236JaralFashionAgc Do youneedexp’dDESIGNERS,PRODUC Accessory Designer/ Licensing Director ***APPAREL EMPLOYERS*** y .** r / - WWD, THURSDAY, APRIL 17, 2003 15 — Arnold J. Karr J. Arnold — Standard & Poor’s rating increase total shareholder re- turn. In view of the substantial cash that Federated has on its balance sheet and our expected future cash we flow, will contin- ue to have the flexibility to fund strategic investments, as well as our debt.” further reduce service said the moves will have no immediate Federated’s “BBB-plus” credit effect rating or its “negative” outlook. on S&P’s Gerald Hirschberg wrote, “The rating Federated will carefully assumes priori- that tize its use of free cash that flow, stock buybacks will be made and that the prudently, dividend, although a more permanent use of cash, is replacing a portion of share buybacks. Nevertheless, based on this development, Standard & Poor’s also believes that the rating incorporates a greatly diminished capacity for operating setbacks.” Federated The quarterly dividend of Federated said it repur- chief Federated executive Federated Announces Dividend Announces Federated NEW YORK Department Stores has declared — its first stock dividend in 15 years and authorized another $500 million to be used for stock repurchases. 12.5 cents a share payable July 1 will to shareholders be of record June 16 and is expect- ed to result in annual disburse- ments of $95 million. Cincinnati- based Federated last paid divi- dends in 1988, before being ac- quired by Canadian real estate entrepreneur Robert Campeau and later going bankrupt. chased 11.4 million shares in 2002, but still has $120 million remaining from a previous au- thorization in addition to the new $500 million provision. Lundgren Terry commented in a statement that the firm “intends to continue to use share repur- chases as well as the dividend to 1.877.LACEDYE — Jennifer Weitzman Jennifer — www.sampledyeing.org There has been a revolving veteran of the firm founded by was pro- Manny Mashouf, his father, moted to vice president of sourc- ing. He’d been acting vice presi- since December. dent of the area door at Brisbane, Calif.-based Bebe for the better part of two years. John Parros stepped down as president last May after less than two years on the job, and Monah Li left the firm as head designer in December 2001 after a year with Bebe. Paul Mashouf ’s appointment followed the depar- ture of Jamel Bennoui, who left the firm after three months as vice president of manufacturing. Daily Courier Service in Manhattan 24 Hour Service No Minimum Yardage •Sample Fabric •Exact Component Matching •Sample Cup Molding The retailer in the last month Also, Paul Mashouf, a 13-year Bebe, which operates 177 Bebe blamed the revised guidance guidance revised the blamed Bebe “abandoned to related charges on and projects” technology information inventory. obsolete of write-off the stores, is expected to report its financial results on April 24. has announced a number of new executive appointments. Ferrell Ostrow was named vice president of store operations after serving as the active supervisor of that area since Previously, February. he’d been vice president of loss prevention since March 1999. decline of 15.2 percent, Bebe said it anticipated its comps for the March quarter to be in the negative low- to mid-teens, from negative high-single digits. Its fell 10.5 percent. March comps Bebe Stores Inc.

Also, on March 3, in announc- This follows Bebe’s previous The company now antici- The Brisbane, Calif.-based ing a February ing comparable-sales a February warning March 13 that it expects earnings to be in the range of 3 to 5 cents, far below year-ago earn- ings of 15 cents and consensus cents. estimates at that time of 11 pates earnings for the quarter ended in March to be in the range of breakeven to 2 cents a share, below the current con- sensus estimates of 4 cents. specialty retailer of contempo- rary women’s apparel and acces- sories blamed the downwardly revised guidance, its second over the last two months, on $800,000 of charges related to “abandoned information technology projects” and another $800,000 for the write-off of obsolete inventory. NEW YORK — has issued its second profit warning for the just-concluded third quarter. Bebe Issues 2nd Warning for 3rd for Warning 2nd Issues Bebe AMERICA’S COTTON PRODUCERS AND IMPORTERS. ¨ Registered Service Mark/Trademark of Cotton Incorporated. © Cotton Incorporated, 2002. Cotton. The fabric of our lives. our of fabric The Cotton. Summer print shift by Lilly Pulitzer. Fabric by cotton. Pulitzer.by Lilly Fabric by shift print Summer bloom ® www.cottoninc.com