MIX UP A KEY MEN’S WEAR CROSSING THE TREND, #COZYBOYZ, MIXES SWEATPANTS, ATLANTIC HOODIES AND OTHER U.K. E-TAILER BOOHOO.COM LANDS ACTIVE PIECES WITH IN THE U.S. PAGE 6 TAILORING AND MORE. PAGE MW1 HEADING TO TRANSPARENCY H&M Report Reveals Global Factory List By SHARON EDELSON AT LEAST ONE fast-fashion retailer is heading to- ward total transparency about its sourcing. As the fashion industry continues to suffer a black eye over tragic factory fi res in Bangladesh and un- safe working conditions in nations such as Cambodia, THURSDAY, MARCH 21, 2013 Q $3.00 Q WOMEN’S WEAR DAILY H&M is stepping up its efforts in corporate sustain- ability by publishing a full list of its suppliers. WWD H&M’s 11th annual sustainability report, which is being released today, reveals the Swedish fast- fashion giant’s modus operandi in countries such as Bangladesh and Cambodia, where it continues to push for improved wages and conditions for factory workers. The biggest revelation is the publication of H&M’s supplier factory list. Retailers have long held suppli- er factory information close to the vest, viewing it as proprietary and not to be shared with their competi- tors. The list made public in H&M’s 2012 Conscious Actions Sustainability Report, represents 95 percent of the retailer’s supplier factories. According to Helena Helmersson, H&M’s global head of sustainability, the retailer is one of the few Active fashion companies to take this step. “We’ve seen a few sports brands doing this,” she said. “We are the fi rst [fashion retailer]. Obviously, we haven’t done this be- fore because we were worried about the competition” trying to use our factories. Ingredients H&M works with a total of 785 suppliers, accord- ing to the report, 340 in the Far East, 242 in South With this season’s blaze of bright colors and Asia and 203 in Europe, the Middle East and Africa. A total of 1,798 factories manufacture goods for H&M. cool shapes, working out just became About 760 are in the Far East, 499 in South Asia and little bit more enticing. Here, 539 in EMEA. In addition, H&M has 148 strategic Body Language’s polyester partners, which are manufacturers committed to the retailer’s sustainability program and have the best re- and spandex top and cord. These companies manufacture at 440 strategic cotton and Lycra leggings. factories and make more than 50 percent of H&M’s Reebok sneakers. For merchandise, the report said. H&M hopes other retailers will be encouraged to more, see pages 4 and 5. follow its lead. “Transparency as a concept is really out KELLNER SEE PAGE 8 AMANDA Gucci’s Growth Gear ASSISTANT: By LUISA ZARGANI FASHION ROME — Sitting under the embellished wooden beams of the 16th-century Roman palazzo Alberini COSMETICS; that houses the Gucci headquarters, the brand’s pres- MAC ident and chief executive officer Patrizio di Marco is FOR brimming with optimism. LTD. “Gucci’s potential has yet to be realized; there is still a long way to go,” said di Marco. Four years into the job, after a comprehensive upgrade of the label, refocusing on heritage and arti- WORKGROUP sanal and Italian craftsmanship, di Marco has helped THE boost Gucci sales to 3.64 billion euros, or $4.66 billion, AT up 60.6 percent from 2.26 billion euros, or $3.14 bil- lion, in 2009, when he joined the brand. Compared CLAUDIA with 2011, revenues last year gained 15.8 percent from BY 3.14 billion euros, or $4.36 billion. In 2012, earnings before interest, taxes, deprecia- MAKEUP tion and amortization climbed 17.7 percent to 1.26 billion euros, or $1.61 billion, compared with 2011. GROUP; Recurring operating income rose 18.9 percent to 1.12 billion euros, or $1.43 billion, in 2012, compared with WALL 948 million euros, or $1.32 billion, the previous year THE and was up 82.2 percent compared with 2009. AT Dollar amounts have been converted at average ex- SEIJI change rates for the periods to which they refer. BY Looking ahead to the next three years, di Marco said HAIR those brands that “know how to talk to their customers will be the winning ones. This is the real challenge.” As part of the Forever Now project, initiated in 2009, JANA/FORD; Gucci’s “artisan corners” traveled around the world with company craftsmen showing their production skills. PHOTO BY KYLE ERICKSEN; STYLED BY BOBBI QUEEN MODEL: SEE PAGE 8 2 WWD THURSDAY, MARCH 21, 2013 WWD.COM Tough Quarter, Strong Year for J. Crew come, if you strip out noncom- egories. He did say the company THE BRIEFING BOX By DAVID MOIN parable items, was actually up,” was pleased with its accelerated Stuart C. Haselden, J. Crew’s rate of store openings, having IN TODAY’S WWD THOUGH FOURTH-QUARTER chief financial officer, told WWD. started 2012 with 362 units and net profits declined, J. Crew Group “The adjusted EBITDA [earnings concluding the year with 401. “It Inc. posted strong results for 2012, before interest, taxes, deprecia- was the most store openings we Looks from Roberto Cavalli at the Global Kids Fashion Week including cracking $2 billion in rev- tion and amortization] is a better had in any year,” Haselden said. show in London. For more, see WWD.com enues for the first time and opening apples-to-apples comparison. It For 2013, the company is pro- a record number of stores. was up 18 percent for Q4 to $70.4 jecting 46 openings including its LEXA.COM For the year ended Feb. 2, net million from $59.5 million.” first in Europe, which will be in A profits rose 86.7 percent to $96.1 Fourth-quarter revenues in- London during the fourth quar- LEXAND A million from $51.5 million in creased 21 percent to $642.9 million, ter, in time for holiday selling. 2011, and revenues rose 20 per- with comparable sales increasing Last year, the retail expansion FOR ES cent to $2.23 billion, with a 3 per- 11 percent. Store sales increased was balanced between divisions, G cent comparable-sales gain. 18 percent to $416.9 million; direct with 17 Madewells, 14 J. Crews IMA Fourth-quarter net profits fell sales increased 27 percent. and eight factory outlets opening 32.5 percent to $10.2 million com- “Q4 was a continuation of the in the U.S. There were also four J. pared with $15.1 million in the strong trend we saw in the first Crew and two factory outlet open- same quarter a year ago. The com- three quarters with a double-digit ings in Canada. The company also GAVAN/GETTY pany said profits were impacted sales increase,” Haselden said. launched a stand-alone Web site for IAN BY by additional share-based and in- “There was a balanced perfor- the factory outlets, rolled out direct centive compensation, while net mance between stores and di- distribution to over 100 countries PHOTO income in the year-ago quarter rect, healthy gross margin results, and completed a major expansion benefited from transaction-relat- and for the year we saw adjusted of the Lynchburg, Va., distribu- H&M will today release its 11th annual sustainability report, which ed insurance recoveries partially EBITDA up 27 percent.” Also in tion center, which handles direct outlines plans to continue to push for improved working conditions offset by amortization of inventory 2012, total store sales rose 21 per- orders. Capacity at the facility in- in countries such as Bangladesh and Cambodia. PAGE 1 step up. J. Crew was acquired in cent to $1.5 billion. Direct sales in- creased 50 percent, Haselden said. March 2011 by TPG Capital and creased 19 percent to $651.5 million. J. Crew will stage a confer- Patrizio di Marco, Gucci’s president and chief executive officer, Leonard Green & Partners. Haselden declined to single ence call today outlining details still sees huge potential for the brand. PAGE 1 “The fourth-quarter net in- out any best-selling items or cat- of expansion in 2013. Lululemon Athletica Inc. took a few knocks after it said Monday that it had to recall 17 percent of its women’s bottoms due to subpar product coming out of its Taiwanese supplier. PAGE 6 Guess Plans Executive Additions, Pricing Moves guidance for the first quarter and process of making some strategic Christian Dior is returning to Dallas’ Highland Park Village with By ARNOLD J. KARR full year fell well short of them, management changes.” The com- the official opening of a full-line women’s boutique today. PAGE 6 pushing shares down 6.1 percent pany will also review the perfor- GUESS INC. WILL confront ongo- in the early stages of after-hours mance of underperforming stores British fast-fashion e-tailer Boohoo.com is re-creating famed ing economic headwinds in North trading to $25.31. They ended the as leases come up for renewal. Manchester nightclub Haçienda on Thursday in New York to America and southern Europe by trading session, prior to the dis- The ceo clearly expected promote the recent launch of its U.S. site. PAGE 6 beefing up its depleted executive closure of results, up 20 cents, or conditions to remain difficult ranks and expanding its offerings 0.8 percent, to $26.95. in southern Europe and North Billionaire Edward S. Lampert is getting a base salary of just of lower-priced jeans. In the three months ended America, but noted strength in Paul Marciano, chief executive Feb.