EYE: More from

s : Norma Kamali the party scene in s goes high-tech, page 5. Cannes, page 4.

FINANCIAL: Retail shares climb, s

s NEWS: Michelle including Dillard's and Saks, page 14. Obama’s Met debut, page 5.

Women’sWomen’s Wear Wear Daily Daily • The• The Retailers’ Retailers’ Daily Daily Newspaper Newspaper • Tktktktk• May 19, tk, 2009 tktk • $3.00• $3.00

W Ready-to-Wear/TextileswDTUESDAY Peaches & Cream Giorgio is feeling peachy keen as resort begins. For his Armani Collezioni lineup, the designer opts for sporty outerwear from great quilted nylon jackets to tissue-weight leathers — perfect toppers to transition into the season. Here, a leather jacket, rayon and elastane T-shirt and rayon, wool and elastane pants. For more, see WWD.Com.

A Momentary Message: Luxury Brands Step Up Pop-Up Shop Openings By Miles Socha — While normally associated with hulking brand edifices on the world’s prime shopping avenues, Europe’s luxury players are suddenly enamored with more modest, temporary stores. Hermès, Louis Vuitton and Chanel are among major brands plotting such retail ventures in the coming months, characterizing them as a way to tap into a new customer base, create excitement — and capture extra sales in a tough economy. “Even if it has been done to address a problem, it can become an opportunity,” said Patrick Thomas, chief executive officer at Hermès International, which on Wednesday will open at 63 Main Street in East Hampton, N.Y., for a four-month stint. “It’s also a very See Temporary, Page 12 photo by john aquino photo by 2 WWD, TUESDAY, MAY 19, 2009 WWD.COM Allen, American Apparel Settle for $5M

By Matthew Lynch cover the Allen settlement. The company did not respond to an inquiry on the matter. WwDTUESReady-to-Wear/Textilesday Woody Allen ended more than a year Following the close of the stock markets FASHION of legal sparring with American Apparel Inc. Monday, the company reported a first-quarter Meet the latest crop of new designers and their Monday when he agreed to a $5 million settle- loss that exceeded analysts’ estimates by 8 cents s 6 ment from the retailer on the morning their and reduced full-year guidance. eclectic pantheon of muses — Myrna Loy, dispute over unauthorized billboard advertise- The loss in the three months ended March 31 Mommie Dearest and Miss Marple — and looks. ments was to go to trial. was $9 million, or 13 cents a diluted share, ver- “It’s of course possible that by going through sus a profit of $1.1 million, or 2 cents a share, in GENERAL the trial a jury might have awarded me more 1 Europe’s luxury players, normally associated money but this is not how I make my living and with huge stores in key locations, are suddenly $5 million is enough to discourage American enamored with more modest, temporary stores. Apparel or anyone else from trying such a thing Norma Kamali has a new strategy that uses social again,” Allen said. 5 networking sites and other Web innovations to The filmmaker filed a $10 million violation enhance the brand experience. of privacy suit against the Los Angeles-based retailer in U.S. District Court in Manhattan in 10 RTW: Trying harder to please shoppers, retailers March 2008. During the prior year, the company are leaning more on their sales associates to ran billboards bearing his face in New York and ensure consumers leave happy. Los Angeles without his permission. The ad- TEXTILES: French fabric mills and apparel vertisements, which were up less than a week 11 before being taken down at Allen’s behest, de- subcontractors are being hit with shrinking orders, picted him dressed as an Orthodox rabbi in a lowered margins and depleted balance sheets. scene from his 1977 film “Annie Hall.” Hebrew EYE script on the signs, which also ran on the compa- Alex ny’s Web site, referred to Allen as the company’s & Eli 4 Forget the screenings, revelers at the Cannes Film spiritual leader. Festival had plenty of nocturnal activities at their Jury selection in the case was to have begun disposal this past weekend. Monday morning. In pretrial filings, Allen’s at- torneys said American Apparel did not seek Classified Advertisements...... 15 their client’s permission and that he had a long To e-mail reporters and editors at WWD, the address is history of turning down endorsements. American [email protected], using the individual’s name. Apparel’s lawyers had argued the ads made a so- WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 cial statement and were protected speech, but FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 197, NO. 105. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with Judge Thomas Griesa threw out their motion one additional issue in January, May, October, November and December, two additional issues in March, April, June seeking dismissal on First Amendment grounds and August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division last week. of Advance Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Chief executive officer Dov Charney took to rs/Corbis Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage te the company’s blog Monday, where he wrote u paid at New York, NY, and at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503.

Re Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian

more than 1,500 words to explain the billboards r/

e addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES y and settlement. He said he thought the company a TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS had a good case but that its insurance carrier, Th CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA c which controlled the defense, wanted to settle. 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed Eri He added Allen was one of his inspirations. on most recent label. First copy of new subscription will be mailed within four weeks after receipt of order. Address all

o by editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. “Naturally there is some relief of not having t For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online ho to go through a trial, but I also harbor a sense of p at www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit www.fairchildpub.com. remorse and sadness for not arguing an impor- Woody Allen in New York on Monday. Occasionally, we make our subscriber list available to carefully screened companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please tant issue regarding the First Amendment, par- advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT ticularly the ability of an individual or corpora- the year-ago quarter. Net sales grew 2.4 percent, RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, tion to invoke the likeness of a public figure in a to $114.3 million from $111.6 million. Analysts UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER satirical and social statement,” he wrote. surveyed by Yahoo expected a loss of 5 cents on MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY Charney has made American Apparel a go-to sales of $117.5 million. WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE brand for the hipster set in recent years using a Retail sales, which increased 16.5 percent ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. strategy of racy ads and bright basics, all of them to $78 million offset wholesale sales, which slid produced domestically in Los Angeles. He’s also 21.9 percent to $28.1 million. Same-store sales been the subject of several sexual harassment declined 7 percent and unfavorable currency DAILY A jury might have lawsuits in that time. shifts weakened the quarterly results, the Los In his post, the ceo drew a parallel between Angeles-based firm said. “awarded me more money, those suits and Allen’s own public trials. In 1992, The retailer also said its operating expenses QUote the director was romantically linked to Soon-Yi for the quarter increased 20.8 percent to $69.3 but this is not how I make my living Previn, 22 years old at the time and the adopted million, or 60.6 percent of net sales, versus 51.4 daughter of his longtime girlfriend, Mia Farrow. percent of sales in last year’s quarter, due to Allen and Previn married in 1997. higher payroll, rent and occupancy expense and and $5 million is enough to discourage Lawyers for American Apparel had ques- depreciation related to the greater number of tioned whether Allen’s endorsement was stores in operation, which included the acceler- American Apparel or anyone else from worth the $10 million he sought in light of ated store rollout in the second half of 2008. the ensuing damage to his reputation. Earlier Charney said the worst was behind the com- trying such a thing again. this month, they included the names of both pany on the wholesale front. “There could be — Woody Allen on settling his lawsuit against” American Apparel. Page 2. Previn and Farrow on a pretrial disclosure of some pent-up [consumer] demand,” he said, add- possible witnesses. ing he saw some new real estate opportunities, “Threats and press leaks by American including a location in Times Square. CORRECTIONS Apparel designed to smear me did not work The company reduced its full-year guidance Diego Della Valle owns the fashion house Schiaparelli and not and a scheme to call a long list of witnesses who to operating income of $40 million to $50 mil- Vionnet. This was incorrect in a story on page one, Monday. had absolutely nothing to do with the case was lion on sales of $550 million to $575 million, also disallowed by the court,” Allen said. His down from a range of $55 million to $65 million The Erin Fetherston movie of her fall-winter collection features sev- lawyers said the settlement was the largest re- for operating income on sales of $575 million to eral of her friends and muses and not the actress Juliette Lewis. This ported sum ever paid under the New York Right $600 million. was incorrect in a Fashion Scoop on page 3, Monday. to Privacy statute. The company’s shares picked up 7.5 per- In January, American Apparel told WWD it cent during the day Monday, to $5.47, but fell maintains a $20 million insurance policy to pro- nearly 19 percent in the first 90 minutes of Armani TODAY ON tect against potential liabilities in the employ- after-hours trading. Collezioni ment suits. It is unclear if the same policy will — With contributions from Alexandra Steigrad Resort 2010. Ferragamo Earnings Slip 17 Percent WWD.com • Additional looks from the Armani By Andrew Roberts gained 1 percent to 691 million euros, or $1.02 Collezioni Resort collection billion, driven by the Asia-Pacific region, where • More new designers from the fall 2009 — Salvatore Ferragamo SpA on Monday sales increased 23 percent at constant exchange. o ready-to-wear season reported a 17 percent drop in earnings in 2008 Dollar figures were converted at average ex- n • More images from the fetes due to marginal revenue growth and a raft of change rates for the periods to which they refer. Aqui n at the Cannes Film Festival new store openings. Last year, the fashion and luxury goods firm For the 12 months through Dec. 31, net profits increased its retail network to 552 stores from Joh • Global breaking news o by fell to 39 million euros, or $57.4 million, from 47 503, including 19 new boutiques in main interna- t • WWDBlog on Michelle Obama

million euros, or $64.4 million, in 2007. Revenues tional airports. Pho at the Met where fun meets fabulous.

LIFE. STYLE. FAMILY. 4 WWD, TUESDAY, MAY 19, 2009 WWD.COM

Eva Herzigova inin Roberto Cavalli. Cannes Goods Forget the screenings: Cannes revelers had plenty of nocturnal activities at their disposal this past weekend. Things kicked off Friday night when news of a performance by Debbie Harry at the Belvedere Vodka party drew hordes of guests including Delfina Delettrez , Robin Wright Penn Peaches Geldof in Roberto Cavalli and Colette’s Sarah Lerfel to the Le Baron club. Many more with the designer. clamored unsuccessfully to get in. Harry finally took the stage at 2 a.m. “This one’s called ‘French Kissing in the USA.’ Anyone from Paris?” she said, before crooning over a tinny P.A. system, karaoke-style. Meanwhile, a manic Rosanna Arquette dashed about the room dragging ladies in front of a camera to pose with hip-hop artist Postman. “Out of the way, I’m working; I’m filming a music video,” she yelled.

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Over at the Vitaminwater beach, Quintessentially hosted by arry, os a bash for Sam Taylor-Wood’s debut feature film, “Nowhere H t Boy.” As Harvey Weinstein, Georgina Chapman, Diane Kruger and Ralph va, i pho Fiennes flowed into the event, Taylor-Wood disclosed that “Atonement” ara S director Joe Wright had placed the film’s script in her lap. “The whole e; g a Johnson thing felt serendipitous,” she said . m Her 19-year-old star, Aaron Johnson, who plays a young John reI and i Lennon, was enjoying his turn in the spotlight. Dressed in an edgy André Saraiva with Alexander McQueen suit, he hoped he’d managed to capture the espa/W Sam Taylor-Wood with Aaron Debbie Harry in V Johnson in Alexander McQueen. essence and spirit of the late Beatle. Michael Schmidt. Jeff Taylor-Wood “I tried not to think about how big the role is,” he said.

L’Wren Scott EYE SCOOP ASTOR ETIQUETTE: Brooke Astor always prided herself on good manners, and in her later years, decried the downward trajectory FINCH’S FLOCK of American culture. Men no longer tipped their hats at women, A group of Hollywood heavyweights gathered on the she complained, and folks were introduced to one another by upper terrace of the Hôtel du Cap Eden Roc on Saturday night to their first names. “We might as well all be called Fido,” she toast the good life — and Charles Finch’s newspaper, Finch’s Quarterly wrote in a June 1999 essay for Vanity Fair. Given her attitude, Review. Producer Lawrence Bender, ICM head Jeff Berg, Martin Scorsese, Astor probably would be shocked if she knew the mountain of Mick Jagger and Ralph Fiennes joined the festival’s Renaissance man for intensely personal details that have been exposed during the an intimate dinner. ongoing trial of her son, Anthony Marshall — but the courtroom And though all the yachts docked in the sea below would suggest drama is also providing a primer in good behavior. otherwise, Harvey Weinstein said that this year’s festival has been low-key. “She was always charming, proper, humorous, decisive “There have been 10 less parties every night here this year, which is a and correct,” testified Carnegie Corp. head Vartan Gregorian on great thing,” said the studio head, before greeting Rachel Weisz, who was Monday. Like other witnesses, he remembered reams of thank- wearing Marchesa. you notes from Astor, as well as quips to suit any occasion Elizabeth Banks, who’s been in the spotlight here as one of L’Oréal and offered her general rules of etiquette: “Once she gave, Paris’ new spokeswomen, shivered near a heat lamp, while Jagger she never took back,” he said, and “her word was her bond.” was busy shrugging off rumors he was due to sing at a party this week. And never, ever, was business discussion allowed at her many Cannes, he said, was never really the Rolling Stones’ style anyway. “It’s cocktail parties and teas. “It was considered déclassé and the sort of thing we avoided, really, I don’t really have any memories of unsociable.” coming down here in the Brigitte Bardot days and all that,” he drawled. However, as her hearing and mental condition weakened, A wet-haired Matthew Modine, who earlier had been for a dip in the Astor’s exquisite manners suffered too — sometimes revealing sea, had the air of a young boy on a summer holiday. “I was playing her often amusing internal monologue. tennis with Charles earlier. They have these wonderful clay courts “Who is that?” Astor loudly asked Gregorian when introduced here, which is such a gentler way to play,” he beamed. to Catherine Zeta-Jones. “She is wearing the wrong dress for the Nearby, Fiennes chatted about his next role in the remake of “Clash occasion,” Astor announced. Zeta-Jones pretended not to hear. of the Titans” in which he’ll play Hades. “The god of the underworld,” Camilla Parker-Bowles took a similar tack when Astor toasted he said, with an impish glint. “My costume will look like it’s been her at a party in her honor. “Mrs. Keppel would have been proud of buried underground for a long time.” you,” Astor said, a reference to Parker-Bowles’ great-grandmother, Alice Keppel, the rumored mistress of King Edward VII. Ralph Fiennes and “Camilla feigned politeness though she had just been told Charles Finch that for generations her family provided mistresses [to the royal family],” said Gregorian. And when accepting a Carnegie Medal of Philanthropy in front of an audience that included George Soros, Ted Turner, David Rockefeller, Tom Brokaw and Lee Annenberg, a disoriented Astor discussed her disastrous first marriage. “When I was young, I married a perfectly terrible man. They were not what you call interesting people, but they had a lot of money,” she said in a video of the speech that was shown Monday. But despite rambling, she still had some valuable advice for the audience. “You can’t expect to have it good all the time,” she said, before philosophizing on civic duties. “Don’t hurt [people] — always try to help them. If they’re absolutely nuts and Harvey Weinstein with stupid, stay away from them.” One has to admit, even then, she had a point. Rachel Weisz in Marchesa. — Elisa Lipsky-Karasz WWD, TUESDAY, MAY 19, 2009 5 WWD.COM City, Industry Meet on Garment Center Michelle at the Met By Rosemary Feitelberg By Sarah Haight About 100 Garment Center tenants poured into Nanette Lepore’s showroom Monday morning to talk zoning with New York NEW YORK — Dressed in a vibrant purple City officials. pre-fall Isaac Mizrahi sheath and knee- The meeting was the largest to date, with half the crowd participat- skimming coat, Michelle Obama sliced ing in the discussion for the first time. In addition to city representa- the ribbon for the reopening of the en- tives, there were suppliers, costume designers and Council of Fashion trance to the Metropolitan Museum Designers of America members and nonmembers. of Art’s American Wing, the Charles To try to get a better handle on just how many Garment Center ten- Engelhard Court, on Monday afternoon, ants are actually affiliated with apparel manufacturing directly or as gathering a boldface lineup of New York suppliers, the CFDA and the Fashion Center Business Improvement society who sat elbow-to-elbow with District revealed they have teamed up to commission a survey of the a group of students from four public neighborhood that will build on a 2007 one. Results from the new one schools in Manhattan. are expected to be tallied in seven weeks. Obama, who was in the city for a day of After the meeting, CFDA executive director Steven Kolb explained, cultural activity — her evening agenda in- “We’re not just going to look at a sewing machine and where it is cluded an appearance at the American stored. Ballet Theater opening — was quick to re- “For the most part, people just want to keep a core part of their busi- mind the audience, which included Annette ness here. Now it’s just a matter of getting everybody together [with a de la Renta, Ralph Lauren, Aerin Lauder, proposal] and moving it forward,” Kolb said. Wendi Murdoch, Anna Wintour and retired Afterwards, Lepore said she hoped the breadth of the turnout would Met director Philippe de Montebello, that show city officials just how many different types of apparel-related busi- the President had allotted $50 million to the nesses make up the neighborhood — far beyond the well-known design- arts in the recent stimulus package. Yet she ers and other CFDA members. “Even if you’re using a sample room in noted that painting, pottery and, yes, fashion the area and you are manufacturing overseas, you are still using the design aren’t just the provenance of the very Garment Center,” she said. rich or sophisticated (this drew applause). City officials highlighted the proposal to earmark a 300,000-square- “The intersection of creativity and com- foot building at 270 West 38th Street for apparel manufacturing, but merce is about more than economic stimu- some attendees deemed that location inadequate. “One building is not lus,” Obama said. “It’s about who we are enough on its own. We just want the building and more,” Lepore said. as people.” Cultural organizations, she ex- “We need to come up with zoning that will work for everyone,” plained, have an obligation to include and she added. serve people of all different backgrounds, Once a proposal is agreed upon — and no one seems to know ex- adding, “I want to applaud the Met for all actly when that could happen — public hearings will need to be held, the outreach that you do.” Lepore said. With no firm timetable in place, a few attendees voiced The reopening of the Engelhard Court concern they might not be able to stay afloat financially if new zoning marks the completion of the second takes a year to negotiate, which could very well happen, she said. part of the American Wing’s renovation, Patrick M. Murphy, head of fashion/retail growth initiatives for the which will cost in total about $100 mil- Economic Development Corp., said, “We are very en- lion and is scheduled for completion in couraged by the large attendance at today’s meeting and the active and 2011. With Mayor Michael Bloomberg, respectful dialogue on the challenges facing the fashion industry. The New York, Sen. Kristen Gillibrand, and city is in the process of analyzing a number of the important issues that the Museum’s newly installed director, have been identified in these discussions and will continue to work with Thomas P. Campbell, looking on from the stakeholders to find zoning and other policy solutions that ensure the dais, Obama invited a handful of the stu- fashion industry and the Garment Center remain important and vibrant dents onstage to help her cut the magenta contributors to New York City’s economy.” ribbon, with each making a beeline for a There seemed to be two camps at Monday’s meeting — those who First Lady hug. After working the small are eager to keep their apparel manufacturing in the area and those crowd of donors and students with hand- who are keen to maintain showroom space there, according to Maria shakes, Obama departed, reportedly for Cornejo. The designer, who produces 70 percent of her Zero + Maria the ABT, where she was to observe some Cornejo label in Midtown Manhattan, said, “What we’re trying to do is to classes before attending the gala (a spokes- protect the factories we work with. They’re the ones that need protect- person noted there would be a costume ing. Otherwise, it will be outsourced from here.” change in the afternoon). Yet the model Implementing some form of rent control for buildings used by appar- Iman, who was also in the audience, stuck chinsee el manufacturers would help domestic garment makers be more com- around, chatting with and wrapping her Michelle Obama at the petitive with international sources, she said. “The problem right now is arms around high school and elementary opening of the Charles that everyone chooses whatever rent they want even though it’s called school students as they lined up to snap Engelhard Court. the Garment District,” she said. “The only way to keep manufacturers cell phone pictures. george photo by here is to have it be rent-controlled.”

Norma kits with sample collections. Party guests can Kamali order them, and get them through Kamali di- Kamali Puts Focus on Web-Based Marketing rectly. The pieces in the program range from $95 to about $1,500, with the core prices be- By Marc Karimzadeh tween $250 and $500. They include swimsuits, dresses, pants and tops, jackets and sleeping NEW YORK — Over the past four decades, Norma Kamali has never been shy about bag coats. thinking outside the proverbial box, coming up with ideas that seem well ahead of “The clothes are made in the U.S., so we’re her time. able to turn really fast,” Kamali said. “We also Her newest ventures serve to underscore that mentality. Kamali just launched know what the best-selling styles and group- a marketing and retail strategy that incorporates social networking sites and other ings are and have certain projections.” Web innovations into her business. She is using Skype technology, Twitter, Facebook, Should the hosts exceed $10,000 in sales, YouTube and, soon, Hulu to enhance the brand experience. their status becomes comparable with that of a “I do better when I am challenged,” she said, referencing the current economic retailer, and they earn themselves the 50 per- climate. “I was forced to think about something I wouldn’t have necessarily thought cent markup. Below that, the hosts can accrue about before otherwise.” free clothes based on the amount sold, or pass For the past few years, Kamali offered a “Try Before You Buy” plan on her Web a 25 percent discount along to the attendees. site, normakamalicollection.com, which allows shoppers to try merchandise without “It’s a different way of approaching the paying for it up-front. They can order the pieces, and if they don’t return them within business,” Kamali said. 48 hours, Kamali charges their credit card fully, having obtained the card details to “It’s familiar and honest,” she added. “You cover the FedEx charges. The strategy has proven successful for the designer. can get a discount out of it, and spend time Recently, a Washington, D.C., customer wrote her that she tried the method to buy a with your friends.” swimsuit, and in the 48-hour time span, showed it to her two best friends, in Vermont Kamali didn’t disclose projections for the and in Mexico, via Skype, the software that allows free calls and video-chat over the initiative, but said she hopes it will make up for the lost business at the retail level. Internet. The chat inspired the Vermont friend to buy a swimsuit too. Kamali has been busy on other Web-based initiatives too. Last week, she started to Intrigued by the story, Kamali instantly sought to incorporate Skype into her busi- Twitter under the user name NKCollection, and her first tweet was on Etta James, who ness. “Now we say if you don’t know what size you are, we can Skype and help you,” is a friend and whom she saw perform at B.B. King Blues Club & Grill last week. she said. “This is how the door opened.” She also launched a YouTube channel, which she plans to use for style guides, With many of the specialty stores struggling or going out of business, she thought employee Webisodes, and other video footage about her, including a clip explaining she would use Skype with “Try Before You Buy” and help customers plan their own how to wear the all-in-one design from her collection for Wal-Mart. She also created selling events. a Facebook page under “Norma Kamali Collection.” Kamali plans to add a button on “We offer them collections they can choose from, and we can send them for 48 online video network Hulu soon to provide video content under the site’s Food and hours,” Kamali said, adding they can invite friends, or family, take the orders in the Leisure channel. comfort of their home, for instance, and don’t have to lay out the money up-front. Kamali famously started her professional path at Northwest Orient Airlines, Where possible, Kamali could even be introducing the party personally via Skype. where, in the Sixties, she booked tours for clients, working on a computer in one The hosts need to take an online training course for certification, and Kamali of the few industries that had them at the time, “So this is almost going back,” she and her merchandise team will put together special “Try Before You Buy” party said, smiling. 6 WWD, TUESDAY, MAY 19, 2009 General Eclectic Myrna Loy, Mommie Dearest and ol’ Miss Marple. Meet the latest crop of new designers and their eclectic pantheon of muses — and looks. — Fashion editor: Mayte Allende;

e written by Venessa Lau l ge hu jillian t: an t assis fashion c.; in ce ri Nonoo Lyons p Backstory: The fashion formula here seems

susan a bit improbable. Footwear designer plus / u z eveningwear designer yields…Nonoo Lyons, a mi tightly edited collection of jackets and coats? BY p

u There’s nary a heel nor frock in sight, despite e the fact that Bahrain-born, London-bred mak ; Misha Nonoo (inset, right) cut her teeth with

aris dressmaker Jovani while partner Deborah Lyons p e launched her own footwear company, Méchante of as t London, earlier this year. “The way we see it is that ras e jackets and coats are the ultimate accessories,” says k Nonoo. “It’s a way of updating a wardrobe without for t changing everything else.” Nonoo is based in New n e r York; Lyons, who has no plans to abandon her shoe line, b r

e shuttles back and forth across the Atlantic. Collection: Classic with a little bit of attitude — that’s how nnif e j Lyons and Nonoo describe their small eight-style collection. BY “[The garments] are named after literary heroines,” explains

hair Nonoo. “Each has its own character.” Thus there’s Bovary, Lolita, ; Gigi, Karenina, Golightly, Eyre, Bennet and Marple. The Karenina lmina is rife with military references; Golightly is embellished with feathery e

ilh details, and Lolita (right) is peplumed and short — “very coquettish,” /w Nonoo says. As for the garment named after Agatha Christie’s old-biddy all detective, it’s a wool cape, natch. “You can just imagine Miss Marple riding e b i t along her bicycle with her cape on, looking for clues,” says Nonoo. Lyons does the ka

: l print illustrations in the linings. e Stats: Wholesale prices for the collection range from $240 for the Bennet mod ; and Gigi jackets to $375 for the Golightly coat.

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ho WWD.com. p FASHION WWD, TUESDAY, MAY 19, 2009 7 WWD.COM

Alex & Eli Backstory: Anna Zeman (inset, left) and Aja

s Singer are serious science buffs, making Frei Designs them an unlikely pair to start a fashion label. Backstory: “I’m Zeman studied biochemistry at the University of obsessed with textures Washington; Singer, anatomy and cell biology at and different fabric McGill University in Montreal. But the creative weaves and processes arts beckoned, and both soon found their — that’s what really way to Parsons The New School for Design, draws me to fashion,” graduating in 2008. After stints interning for says Annie Novotny Zac Posen and Carolina Herrera (Singer) and (inset), a graduate of the Rodarte and Chado Ralph Rucci (Zeman), School of the Art Institute they launched Alex & Eli, a suit-based line, of Chicago. That interest in this spring. Explains Singer of the name: textiles eventually led her to “We ended up masculinizing our middle launch an eco-friendly collection, names. Mine is Alexandra, and Anna’s is Frei Designs. “I started to get more interested Elizabeth.” in the origins of things,” she explains. “What Collection: “We both really appreciate started out as just looking for organic fabrics has led me tailoring and patternmaking,” says Singer of to this whole new direction. I’m doing fair trade now.” the decision to launch a suit-centric collection. Novotny, who’s still based in Chicago, cut her teeth “I mean, you love Yves Saint Laurent, but that’s working at local retailer Robin Richman and with New one end of the spectrum that’s very expensive. York designer Gary Graham. In addition to designing For someone in our age bracket and price point, for Frei, Novotny teaches an early college program for there’s not really interesting high school students at the SAIC. suiting available.” For fall, Collection: “I was playing on the word fray, like that tailoring conceit fraying clothing,” says Novotny to explain the label’s led the designers to unusual moniker. “At the end of the day, it’s just look for inspiration cloth. It’s not permanent.” That mind-set also in Joan Crawford, helps explain the melancholy, slightly macabre as played by undercurrent that pulses throughout her collection Faye Dunaway of gentle layered tops and dresses. Take, for in “Mommie instance, the inspiration behind her fall collection. Dearest.” Thus, Back in December, as part of an art-performance the Forties vibe piece, Novotny staged her own funeral, complete throughout, punched with a casket-shaped piñata. Thus, the lineup is up an edgy notch rife with Victorian mourning references. Even the with wayward seaming artsy batik prints evoke an otherworldliness for her: and zippers also inspired “spirits or smoke or spiderwebs,” she says. But it’s by stained glass windows. not all doom and gloom: Novotny chooses to line Those pops of yellow and fuchsia, her garments in silver silk. for instance? They come from the garden scene when Stats: The collection wholesales from $130 for Dunaway angrily slashes her way through the rosebeds. a tunic top to $450 for a wool mourning coat. Stats: Wholesale prices for the collection range from Pivot and Robin Richman in Chicago; Nomad in $150 for trousers to $295 for jackets. TenOverSix in Cambridge, Mass., and Worthwhile in Charleston, Los Angeles and Maryam Nassir Zadeh in New York have S.C., have all picked up the line. picked up the line.

Roseanna Backstory: Partners Anne-Fleur Broudehoux (inset, right) and Roxane Thiery go way back — the two were childhood friends in their hometown of Lille, France. Both enrolled at the French fashion school l’Ecole Supérieure des Arts et Techniques de la Mode (ESMOD), with Broudehoux graduating from its business arm, the Institut Supérieur Européen de la Mode (ISEM). “During our studies, we had a desire to create something together,” says Broudehoux, “but we followed our own paths.” Indeed. After earning their degrees in 2001, Broudehoux went into distribution for Alberta Ferretti, while Thiery began to design for French label ba&sh. Collection: Roseanna, christened after their nicknames, was initially launched last spring as a swimwear line. By fall, the designers had expanded to include lingerie, loungewear and beachwear. Now the collection runs the full span of ready-to-wear options, without losing sight of that original nonchalant, casual vibe. “The idea was not to create something too sophisticated,” explains Broudehoux. “It’s a mix between refined details and shapes that are really comfortable.” Think Charlotte Gainsbourg and Kirsten Dunst, according to Thiery and Broudehoux: louchely layered tops, cozy knits and arm warmers, along with roomy jackets. Stats: Wholesale prices for the collection range from $75 to $95 for shirts; $95 to $100 for jackets, and $130 to $160 for cashmere knits. Swimwear goes from $60 to $85. Roseanna is available at Gas and Merci in Paris, Antonios Markos in Athens, Satine in Los Angeles, Maryam Nassir Zadeh in New York and Hejfina in Chicago.

s Standard Finery Backstory: Caron Callahan (inset) has her seamstress grandmother to thank for her fashion interest. “She planted the original seed,” says Callahan. “And that’s what primarily drew me to New York — I wanted to go into fashion.” Still, the Birmingham, Ala., native opted to enroll in New York University’s Gallatin School of Individualized Study, focusing on marketing and fine arts, rather than attend a conventional fashion school. “I was looking for an education, not a training ground for my profession,” she explains, adding that she’s racked up plenty of industry experience since graduating in 2000. And, indeed, her CV speaks for itself, with stints at Barneys New York, Tracy Feith and Derek Lam. Collection: The name of the line, Standard Finery, says it all: “I think of quiet, special pieces that are lasting,” she explains. “That’s where I got the idea of something standard; it’s not this precious thing you only pull out for your date night. I don’t want anything to necessarily be complicated to the eye.” Which isn’t to say her designs are for the Plain Jane sort — her loosely cut dresses and tops are elegantly restrained and subtle, with most of the visual interest courtesy of tone-on-tone seaming details. “I like classic trimmings,” she adds, “like grosgrain. It’s really simple but beautiful. It’s a great example of what I consider standard finery.” Stats: At wholesale, the collection ranges in price from $98 for camisole tops to $300 for coats. Retailers include Mick Margo in New York, Feature and Satine in Los Angeles and Address in Philadelphia. 8 WWD, TUESDAY, MAY 19, 2009 WWD.COM General Eclectic s Mario Moya Backstory: Mario Moya may not have a fashion degree — but that hasn’t stopped the Mexico City-born, Chicago-bred designer from working for the industry’s top names. Moya trained at such varied houses as Thierry Mugler, Jacques Fath, Marc Jacobs, Byron Lars, Katayone Adeli and Zac Posen. Mugler, however, would have the most lasting impact on his own design sensibility. “I’m a futurist,” says Moya, adding that his first project chez Mugler was Susanne Bartsch’s wedding dress. “I mean, I come from the Eighties. I love Grace Jones.” Collection: Moya’s girl is sexy, with an Eighties fierceness to her look. Consider some of his muses for the fall debut: Catwoman, Barbarella and Lara Croft. “It’s that kind of fantasy girl,” says Moya, noting he was initially inspired by “alter egos, women in different moods and villainesses.” To that end, everything is super body-conscious: form-fitting sheaths and bustier dresses in tight-waisted silhouettes. His tailored pieces, meanwhile, owe much to his Mugler schooling — jackets come sharp and with strong shoulders. “Everything’s got an elegant kink to it,” he notes. Stats: Wholesale prices for the collection range from $400 for a pullover to $7,000 for a pleated organza gown. The line is available on his Web site, hautecouture.com. e s l Louisa Parris Backstory: Londoner Louisa Parris began her fashion studies uge h at Kingston University before transferring to Central Saint Martins, graduating in 2004. That Parris would go into illian j

t: something creative wasn’t surprising, given her family’s an t professions — mom is a fashion illustrator; dad, a retail interior designer (she notes that he worked on the first assis Topshop building “many, many moons ago”), while her sister Georgia studied at the Lee Strasberg Theatre and fashion Film Institute. Parris herself worked at Ghost, Mulberry, c.;

in Gharani Strok and with costume designer Mark Bouman

ce in London, before moving to San Francisco in 2005. She ri

p then spent a year with lingerie label Zovo, nabbed a Gen Art

san Fresh Faces Award in 2008 and is teaching at San Francisco’s u s Academy of Art University. u/

miz Collection: “I wasn’t one of the kids who got dressed up in crazy

BY

outfits every day at Saint Martins,” remarks Parris. “I was the

eup geek, the conscientious kid doing my sketchbook. It’s not a

mak bad thing if I just want to do beautiful dresses.” Which is ; exactly what Parris does — simple, easy, no-fuss silk gowns aris

p with flyaway panels and draping. “I like to keep things very e

as streamlined and fresh,” she says, “not glittery.” Geometrics t also play a large part in her designs, both in cut (giant circle ras e k

or square patterns) and colorblocking (inspired this season

for by Piet Mondrian and Josef Albers). For spring, Parris t n promises more structure and a dramatic Egypt-meets-Op e r

b Art-meets-Alphonse Mucha theme. r e Stats: Dresses wholesale for roughly $700. Retail venues nnif have yet to be determined. je BY hair ; lmina e wilh / all s e b i t Caycee Black ka

: Backstory: While a student at l e Parsons The New School for Design, mod Houston native Caycee Black interned N; E at both Mimi Turner and Anna Sui. KS

C After graduating in 2003, she went to work RI E

E at Club Monaco and then became a knitwear L Y designer at Tibi. “Club Monaco taught me more of the corporate side,” says Black. “At Tibi, I really started from the bottom up. There were R AND K

E nine of us when I began, and there were about 45 when I left.” Since IZ T launching her eponymous collection for fall, Black has also been dressing AL

W rock bands The Pains of Being Pure at Heart and The Depreciation Guild for E

DR their videos and performances. Of course, her boyfriend’s connections help; he’s BY the drummer for the former and the lead singer for the latter. S T Collection: If there’s one word Black likes to use for her collection, it’s RAI T “autobiographical.” “It’s everything in my life that I love,” she says, bringing OR P up her years spent studying ballet as a case in point. “There’s a gracefulness e;

on in everything,” explains Black, who still takes adult ballet classes in the city. cc “The silk jersey bodysuits, the use of silk organza — it’s that feeling of ballet without it being a huge tutu or anything.” But there’s an arty polish to her ianna designs, as well — draped dresses and watercolor-print tops — that stems from her own artistic background. To all this, she folds in her enthusiasm for what she calls “old-lady movies from the Thirties and Forties.” “I could totally tHOMAS by get down like a grandma,” Black quips, noting that her muse for fall was os t Myrna Loy — thus the strong-shouldered tailoring throughout. ho

p Stats: Wholesale prices range from $110 for sweaters to $350 for coats. The collection has been picked up by Feature in Los Angeles, Bijou in Scottsdale,

FASHION Ariz., and Jamie in Nashville. WWD, TUESDAY, MAY 19, 2009 9 WWD.COM

Shoes from Repetto’s FASHION SCOOPS fall collection.

CRYSTAL CARPET: Rumors are already aflutter in Cannes as to what Angelina Jolie will don for the premiere of Quentin Tarantino’s “Inglourious Basterds” — in which Brad Pitt stars — on Wednesday. Word has it the working mom is considering a red-carpet dress by Belstaff, the brand behind the military-style jacket worn by her beau in the movie. Belstaff, which fetes its 85th anniversary this year, is sponsoring the film’s after party at the Baoli Beach, along with The Weinstein Co. and Universal. The jacket worn by Pitt in the film will be on display, along with a range of Belstaff pieces due to star in upcoming flicks, including “Amelia” with Hilary Swank and “Public Enemies,” starring Johnny Depp.

A look from FRENCH CLUB: The Chambre Syndicale has named Belstaff’s ready-to-wear designers Kris Van Assche, Manish Arora new red- and Peachoo+Krejberg as its new members and invited carpet line. Alexandre Matthieu and Rabih Kayrouz to join the couture calendar in July.

HAMMER TIME: Hermès collectors will have a rare chance as hundreds of vintage handbags, watches, jewelry and accessories go under the hammer at Parisian auction house Artcurial Wednesday. The 766 items, which come from several private collections, range from leather belts and equestrian-themed scarves to a raspberry-colored crocodile Birkin bag estimated schhoff i f

at 14,000 euros, or $18,900 at current exchange. a nn a COCKTAILS AND KATE:

Kate Spade threw a party shosh last week to fete its new d by store concept. Bold, e colorful stripes and campy RA; styl

decorative objects such as T MI

a rotary phone and record T

player now decorate its ER OB

lower Fifth Avenue store, R with other shops following suit in the coming months.

Guests were Hula-hooping photos by courtesy of free lessons and typing messages for the brand’s Twitter page on a vintage typewriter A bold look at Kate Spade. termed the “Tweeterwriter.” The store’s windows are decorated to encourage customers and those passing by to enjoy summer in the city with Dance Master playful activities, such as renting a tandem bicycle or cocktailing outdoors. “The shop The adage that every little girl would like to grow up to become experience and assortment are the most dramatic and bold expression to date of where Kate either a princess or ballerina (or, ideally, both) may no longer hold true in these Miley Spade is going,” said William L. McComb, chief executive officer of Liz Claiborne Inc. “This Cyrus-centric times, but Michael Flanagan is hoping otherwise. Flanagan, a former in- is why we bought this brand and the store reset signals its future.” vestment banker, is the first North American director of Repetto, the Paris-based dance- wear and shoe company. Charged with opening Repetto’s New York showroom for the GETTING PERSONAL: Starting in June, Louis Vuitton will extend its “Mon Monogram” spring 2009 season, Flanagan had one priority. “Build demand,” he says. Translation? customization service, which was introduced last year, to its Pégase 55 suitcase’s classic Get grown-up women back to the ballet shoe brand they chasséd in as little girls. and business versions. The service, which already exists for the house’s Monogram canvas While fashion trends are in Flanagan’s favor — thank you, Lanvin — name recogni- Speedy handbag and Keepall travel bag and is available in 100 Louis Vuitton flagships tion is not. Repetto was founded in 1947 by French cobbler Rose Repetto. The story worldwide, allows customers to personalize canvas. This can be done with up to three goes that she crafted a pair of pointe shoes for her ballet star son Roland Petit; 10 two-tone initials, vertical or diagonal stripes (or a combination of both) in a choice of 17 years later, she whipped up ballerina flats. Though the company has long been rec- colors. Customers can visualize their design ideas through a computer simulation in-store. ognized in Europe as a venerable producer of both professional dance shoes and, in Fabrication takes from six to eight weeks. recent years, everyday ones (the chic ballet slipper and currently au courant jazz shoe are bestsellers), Repetto’s identity in the U.S. is less defined. For one thing, there’s the PARSONS HONORS: “This woman is a David Bowie…a Mick Jagger,” remarked Betsey Johnson price: about $94 at wholesale for a perforated leather ballerina shoe (a style immor- Thursday night at Parsons The New School for Design’s AAS Line Debut showcase for talized by Brigitte Bardot), while a high-heeled shoe wholesales for about $140. Then students in its Associate in Applied Science there’s availability: Until this spring, Repetto shoes could be purchased online or at a program. The designer, in pigtails, was handful of small boutiques and in limited quantities at stores like Bergdorf Goodman. on hand to award Fern Mallis the school’s Flanagan has set out to change that, ramping up sales directly through the showroom first-ever AAS Icon Award. When guests and increasing the brand’s retail presence to more than 80 locations across the country, got a little rowdy — free-flowing booze and including Kirna Zabête, Alan Bilzerian and Fred Segal. While the privately owned firm coeds may not be the best event combo — will not release sales figures, Flanagan says sales for the U.S. spring 2009 season have Johnson wasn’t afraid to shush the crowd. been higher than all of 2008. “Shhh! Come on, kids,” she said, adding a “Before, you occasionally saw [Repetto] at a trade show, and you might know the quick “I’m looking to hire” that brought the name from the dance world, but otherwise we’ve been an in-the-know brand,” says audience to quiet attention. Other designers Flanagan, who has installed his three-person team in an airy showroom in SoHo for- present included Jen Kao, who received the merly inhabited by Yohji Yamamoto (one of the several high-profile designers, includ- Stacey Nipps Alumni Award; Tom Scott and ing Karl Lagerfeld, with whom the company has collaborated on runway shoes). “But jeweler Eddie Borgo. Fern Mallis, Betsey Johnson and Jen Kao. our goal is not just to be more visible. We want to build relationships with buyers, re- mind women that the essence of Repetto is about dance. You don’t have to be a dancer to wear our shoes, but that history is integral to [the company] succeeding.” To that end, Flanagan has been establishing relationships with dance schools and companies, inviting instructors, students and professional dancers to visit the New Reyes Names Cozzi as President York showroom, as well as offering in-store tutorials on how the shoes are crafted: For As part of its strategy to ratchet up its five-year-old business both the street shoes and dance shoes, the stitching is done on the reverse side and the to new levels, Brain Reyes Ltd. has named Stephanie Cozzi as its first president, shoe is then turned outside in; the leather sole is beveled, so that it is strong and sturdy, hiring her away from Zac Posen. and each piece is finished by hand in the company’s workshop in the Dordogne region She joins the company today and oversees sales, production, marketing and of France. Educating sales staff on the unique production process, Flanagan explains, public relations. Cozzi reports to Jim Sabey, managing partner of Brian Reyes. helps them articulate why the company’s price points are higher than, say, London Sole “Stephanie’s extensive experience and knowledge of the fashion industry will or J. Crew’s. “There are cheaper brands out there, but whether the economy is up or without a doubt propel our brand to greater heights,” said Brian Reyes. down, we continue to make our shoes the same way,” says Flanagan. Having worked in the fashion industry for more than a decade, Cozzi was most And with street shoes accounting for 65 percent of the company’s U.S. sales, inven- recently vice president of sales at Zac Posen, where she worked closely with tive design — such as the tortoiseshell pattern and loafer silhouette the company sent Posen to create seasonal merchandising plans, and oversaw the global retail dis- forth for fall — is a priority, as is the bridge line of activewear the company launched in tribution of his collection. Prior to that, she spent several years working in visual the U.S. for spring. Consisting of loose tanks, cotton pants and hoodies, the clothing col- merchandising. lection has done well in warm weather markets, according to Flanagan. Add to the mix Her hire isn’t the only way Reyes is branching out. As of June 15, Brian Reyes the limited leather bag line already in stores, and it seems the only thing missing from is relocating to 5,000-square-foot headquarters at 304 Hudson Street — five times Repetto’s American entrée is a glossy print campaign, which the company has long the size of its current Union Square address. The more low-key location may ap- bankrolled in France. Prima ballerina billboards are not yet on the horizon, however. peal to some of Reyes’ more discrete clients like Kate Hudson, Tina Fey, Jennifer “We’ve just entered the market, so advertising isn’t our focus,” says Flanagan. Garner and Eve. “These days you have to support your retailers. One thing at a time.” — Rosemary Feitelberg — Sarah Haight 10 WWD, TUESDAY, MAY 19, 2009 WWD.COM Ready-to-Wear Report Salespeople Shoulder More Customer Service These days, Macy’s also has sales By Rosemary Feitelberg Sales associatesassociates areare reachingreaching associates handle any customer out toto shoppersshoppers withwith phonephone calls,calls, WELL AWARE THAT SHOPPERS service issues within their depart- e-mails andand specialspecial attention.attention. — that is, the ones that are still out ments, and many keep handwritten there — haven’t the time, inclina- logs of shoppers’ concerns and re- tion or patience to hunt down the quests. A Macy’s spokesman said, customer service department, more “The process allows us to really retailers are leaning on sales asso- listen to what customers are say- ciates to ensure consumers leave ing and to take quick and decisive happy. And face it: After months action. Shoppers really do have a of this economic slide, most busi- meaningful impact on stores, and ness executives are savvy enough the sales associates are key infor- to know a little cheerfulness goes a mation gatherers.” mighty long way. Cynthia Rowley is getting in While customer service depart- touch with shoppers in a more un- ments haven’t vanished, they are usual way. The designer’s new store no longer the epicenter for most in Charleston, S.C., now has a Style consumer queries or complaints. Hotline that shoppers e-mail for Macy’s, Lord & Taylor and Saks fashion advice from the store man- Fifth Avenue are encouraging sales- ager for specific personal occasions people to interact more with shop- or other conciergelike services, pers to ensure they are getting just such as a tip about a new bar in what they are after. For many staff- town. Rowley weighs in from time to ers, that means double duty, since time with her own suggestions and sales forces have been reduced in plans to introduce the Style Hotline recent months. to her stores in other cities. During visits to six New York Peter Arnold, president of stores earlier this month, the new- Rowley, said, “The concept of cus- found hospitality also could be seen tomer service isn’t outmoded, al- in more subtle ways, such as friend- though the ways in which it’s imple- ly security guards instead of stone- mented often are. We think of our faced ones, candy bowls in Saks Style Hotline, individual Facebook Fifth Avenue’s St. John boutique pages for our stores and shopping and salesmen smiling all the way events in customers’ homes as dif- as they retrieve stacks of shoes for ferent, relevant ways to provide cus- fickle shoppers at Lord & Taylor. tomer service. We get in touch with Suzanne Stemper Johnson, customers who purchase items from group senior vice president and us online and we note those who general manager for Saks Fifth are not located in an area where we Avenue’s flagship in New York, said, have a store to see if we can bring “Obviously, customers are being the clothes to them on approval. We very careful and thoughtful about want to engage them and have them how they do spend their money. engage their friends.” There does seem to be some recent At Henri Bendel, a saleswoman pent-up demand, but when they do said the economic crunch has rock- come in, [the experience] has to be eted staffers into action with many extra glorious.” trying more than ever to exceed Further complicating the situa- customers’ expectations. They will tion is that shoppers know they are personally drop off purchases at an es in a position to barter — or bark, g out-of-town shopper’s hotel if need ma as the case may be. A Bergdorf I be, she said. When, during a visit Goodman sales associate, who re- to H&M’s Fifth Avenue store ear- quested anonymity, said shoppers lier this month, a shopper — who want more one-on-one attention. had not purchased anything — in- “Since they are shopping [and quired about nearby J. Crew stores, oductions/Getty

many others are not], they feel as Pr saleswoman Porsche Williams of- though they are owed something,” fered detailed directions to the she said. “It’s as though they think, Rockefeller Center location. She If I am spending this much money said H&M staffers in that store, as and no one else is, they expect to be RL photo by well as the 34th Street locations, checked on every five minutes.” know to be friendly to tourists. “It’s And all this special attention is always expected that we go above not lost on consumers. With a cli- A lot of customers just want to get something off their and beyond to help shoppers find ent from Boston in tow at Bergdorf “ the right sizes, what looks good on Goodman earlier this month, free- chest that may not pertain to their purchase. And if we sell them and anything else they need,” lance personal shopper Linda Williams said. Wolff, who also owns the CPW spe- something, we really want to make sure they love it.­ Every morning the sales team cialty store in New York’s Upper — Suzanne Stemper Johnson, Saks ”Fifth Avenue assembles for a 10-minute meeting, West Side, said, “Salespeople can’t which sometimes involves acting do enough for you. It’s so different out customer service scenarios or than it used to be. We were just in putting together age-appropriate and they were so kind and welcoming. There’s them photos of looks they might like. outfits. “It’s actually a good way to get everybody amped no attitude — anywhere. I’m sure management has said, “The days of calling clients on the phone when up for the day,” she said. That kind of teambuilding ‘Kiss ass.’ Now you can ask salespeople anything and they are eating dinners are over. No one wants that — seems to have carried over to cost cutting, considering they are very patient. It used to be you were judged for at least most people don’t,” Johnson said. “Everyone many staffers agreed to reduce weekly hours in order to how you looked.” uses e-mail.” avoid layoffs, she said. And even prices are often open to negotiation. As one That might explain why several sales associates were Customer service has been and will remain a prior- Lord & Taylor salesperson said when a shopper inquired glued to their handheld devices and cell phones dur- ity for Zara USA, according to a company spokeswoman. about the length of a sale: “There’s always a sale!” ing a recent visit to a Saks’ flagship. That was also the “As for the customers, we have not seen major changes Knowing an increasing number of shoppers will look case with several salespeople at Bergdorf Goodman and in their attitudes towards service, since they have grown for the slightest flaw on a garment to get another dis- Lord & Taylor. But for the most part, staffers are all ears to expect the high level that we deliver on a consistent count, some stores are trying to put the brakes on such — and not just out of the goodness of their hearts. basis,” she said. consumer behavior. After a successful test in 20 markets, Saks staffers have been advised to listen more care- At Lord & Taylor, more employees are going the extra Macy’s is rolling out its My Macy’s program nationwide fully to shoppers. “A lot of customers just want to get mile for customers lately in order to make every sale where district merchants and planners are continually something off their chest that may not pertain to their they can — hunting down styles in the stock room, on the in its 804 stores listening to shoppers’ suggestions and purchase,” Johnson said. “And if we sell something, we computer or phoning other stores to have them shipped, concerns, and taking action to try to keep them coming really want to make sure they love it.” which may not have always been the case six months back and to localize assortments for individual stores. But if for some reason they don’t, returns, including ago, a saleswoman said. “We are always trying to be bet- Even H&M, whose calling card has always been dis- online ones, can be made at any register. Shoppers can ter for clients. Sometimes it’s a matter of just listening to posable fashion, not TLC, is having morning meetings make payments for their Saks cards there, too. A Saks that little minutiae thing they want to say. A lot of people to fire up staffers. Saks Fifth Avenue started arming its saleswoman said, “The people who come into the store just want to be listened to,” she said. “We are all in this leading sales associates with BlackBerrys last year so do shop, but they return a lot, too,” she continued. “We’re together and we are going to get out of this together. Yes, that they can e-mail clients about new merchandise, let here all day — there is only so much you can do to look business has been challenging, but we just have to be a them know alterations are ready to be picked up or send busy when there is no one to help. It is what it is.” little more creative in the way we reach out to clients.” WWD, tuesDay, may 19, 2009 11 WWD.COM Textile & Trade Report French Mills Seek Path Through Recession By Katya Foreman Calais’ new lace museum: La Cité Internationale de la Dentelle et de la Mode de Calais. PARIS — France’s textile industry is feeling the pressure of the economic downturn, with a number of fabric mills and apparel subcontractors hit with shrinking orders, lowered margins and depleted balance sheets. Experts predict the industry could stand to lose up to 15 percent of its skilled workforce this year due to layoffs, with many firms implementing partial short- time working. Some luxury brands are said to have reduced production volumes by up to 40 percent, with certain houses editing out local suppliers or mulling delocalization, though since the Eighties a number of fashion brands here have already moved production abroad. “For 14 years until October 2008, I was refusing work. Now I’m desperate for or- ders,” said Jean-Pierre Bernard, director of artisanal producer La Ferté Confection, which is based in Normandy and employs some 90 people. Bernard said Louis Vuitton planned to trim La Ferté Confection from its supplier network and that represented around a quarter of its business. Orders are down by rivière Moatti for Denancé Michel by Photo as much as 40 percent for the firm, where remaining clients include Chloé, Thierry Mugler and Andrew Gn. “I’m young but I don’t have the pretension to claim that I can do better,” Biville Laurent Vandenbor, managing director of Ouest Mode Industrie, which represents said. “The new thing I can add is export. My predecessor didn’t understand that.” a network of textile firms based in the west of France, a region specializing in luxury He predicted things will be “revolutionized” over the next couple of years. women’s wear, said a number of brands from big luxury groups are out to reduce the “Distribution will be questioned, it’s a question of survival,” he said. number of suppliers, as well as the size of their orders. Companies are testing a variety of strategies for getting through the downturn. Its members represented around half of the exhibitors at the recent Made in Ouest Mode Industrie’s Vandenbor said his region’s firms are brainstorming ways to France by Fatex Paris trade fair, dedicated to high-end French artisans and subcon- work with brands more at the conception stage of designs in order to further tighten tractors spanning leather goods makers to clothing manufacturers. Each exhibitor production cycles. owns at least one production site in France, employing a minimum of 10 employees, Others are implementing intensive training programs for their staffs, or are and has the right to use a “Made in France” label on their products. forming partnerships. The last three to four years have seen a number of mills During a recent visit to textile firms in the north of France, Luc Chatel, France’s from the Lyon region strike up partnerships with subcontractors from ’s secretary of state for industry and consumer affairs, stressed the importance for the Como district, for example, according to Karin Güllering, market director of government and for the national economy of maintaining and developing the coun- Espace Textile, which consults and promotes textile firms based in France’s try’s textiles sector, with certain government-backed initiatives said to be under way Rhône-Alpes district. to support it. Depleted of funds, several firms have gone bust or are being taken over, she said. However, the outlook for many French textile producers looks bleak. Roland “We are at the bottom of the wave,” Güllering said. “They say the future of Europe is Poulet, chief executive officer of Avelana, a specialist in wool blends that was estab- innovation, but these firms have no funds. Margins are necessary to invest in machin- lished in 1947, said he knows of few mills in robust health. ery and research and development. Developing new fabrics costs a ton of money.” “There’s an enormous break in confidence from the banks and insurers who no lon- Certain mills are branching out to new sectors such as architecture or the automo- ger want to deal with textiles firms,” Poulet said. “We’ve never seen anything like this.” bile industry, for example, with several firms tapping into the uniforms sector. Even those few French mills immune to the malaise are concerned for their se- Examples include TBM Soieries, which recently developed a fabric lining for the curity in view of the increasingly frail state of certain suppliers in the chain. Citing glass roof of a new museum, and Sofileta, a nanotechnology specialist that has branched “exceptional” growth, with business up 15 percent, Guigou, one of the country’s few out into techno skiwear. Porsche is even said to be considering using lace for its cars. remaining luxury jersey mills, plans to establish an in-house finish- ing department, for example, in order to help guarantee its future. The firm services a number of players from the couture domain. “[France’s] thread dyers are in an extremely fragile state and we’re trying to secure year-long contracts with our wool suppliers, many of which are based in Italy,” said a spokesman for Guigou. With successive crises having already weakened a number of links in the chain here, such as spinners, the country’s finishers are in peril, observers said. The lace industry here is also in a delicate state, with certain firms reporting order declines of up to 50 percent for fall, notably from U.S. clients. Last October, Noyon, faced with competition from Asia, had already shifted a large part of its production to its factory in Sri Lanka and en- tered into financial administration for an initial period of six months. “We’re getting ready to reduce our structure,” said Cécile Boury, SHIRTINGS aReN’T juST commercial director at Sophie Hallette. “It’s a very critical situation, but for how long we don’t know.” foR SHIRTS aNymoRe! Founded at the end of the 19th century, the firm’s laces are pro- duced, dyed and finished in France, except for certain designs re- quiring handiwork from Indian ateliers. Boury cited the bridal mar- We at Philips-Boyne Corporation have understood this concept ket as one of the lace industry’s few buoyant areas, with luxury also for over 60 years. showing resilience. “Our main target is to get bulk orders from customers,” she said. We inventory over 3 million yards of the highest quality textiles “We’re still working with the main names, it’s just that quantities are lower.” in the New York area. Mills say the crisis has forced them to push creativity and quick response, with many intensifying brand exclusives. This season, Imported 100% cotton; premium long staple, Egyptian Sophie Hallette developed an exclusive metallic lace for Zac Posen, • Solid broadcloths, Superba®, Corona®, Ultimo® with a number of similar projects in the pipeline for spring. • Oxfords “The only companies who know how to make Leavers lace are in Calais,” said lingerie designer Chantal Thomass. “Other laces are • Pinpoints frankly less beautiful. It would be tragic if lace were to disappear.” • Tone on Tones, Dobbies, Satin Stripes, Jacquards Boasting years of experience, certain mills here are scrambling • Piques to readapt their services to today’s increasingly intense production • Eyelets cycles in an attempt to secure ties with their clients. “Companies are adapting to new rhythms and trying to be more • Yarn-dyed Stripes & Plaids reactive,” said Brigitte Le Gal, director of export and promotion for • Seersuckers France’s textiles industry union. “They’re in a state of flux. [Trade • Batiste shows] are being pushed forward, so it’s a race to get collections ready. Clients [drag their feet] on orders, then expect them to be • Voile delivered quickly, but at a certain point one cannot compress time • Gauze any more.” • Swiss Dot Christophe Hebben, who in 2007 acquired the struggling 80-year- • Gingham old Lyonnaise silk mill TBM Soieries, that counts the likes of Yves Saint Laurent, Chanel and Paul & Joe among its clients, said, “The Stretch; Solids, Yarn-dyed Stripes & Piques only point is to bring the customer flexibility and reactivity. We need to be younger and younger, nothing should be static, everything has Low Minimums! to be done in shorter pulsations with a view to evolving.” And even as the industry faces significant challenges, it continues to attract young entrepreneurs determined to find their place. Philips-Boyne Corp.® Yann Biville, a former export director at the Hermès-owned 135 Street Farmingdale, NY 11735 Bucol, for example, recently acquired Belinac, a 127-year-old Tel: 631.755.1230 • 1.800.292.2830 • Fax: 631.755.1259 silk linings supplier to the likes of Lanvin, Nina Ricci, Dior and www.philipsboyne.com • [email protected] Givenchy, with a view to expanding distribution. 12 WWD, TUESDAY, MAY 19, 2009 WWD.COM Temporary Shops Gain Favor Among Luxe Set Continued from page one be a beneficial thing,” she stressed. interesting way to talk to new categories of customers.” Chanel first created a temporary store in 2007 within the Tokyo concept store Thomas was mum on details, but Hermès is said to be mulling three or four such Restir, reprising the idea for three weeks last year at London’s Dover Street Market, temporary locations this year, including in Europe. “If we open a temporary store, it’s operated by Comme des Garçons International, in support of Chanel’s Paris-London a way to check: Do we have customers in that area or not?” he explained. “It’s a good pre-fall collection. way to put a toe in the market.” Yet even for temporary stores, prime locations are key, according to Pavlovsky. “It’s a way for our brand to renew its vision, and to inspire the imaginations of “They must correspond to our values of luxury, creativity, services and modernity,” a wider public,” said Bruno Pavlovsky, president of fashion at Chanel, which will he said, lauding Podium as a “must-see” destination with its imposing architecture christen a temporary store in Moscow later this and minimalist interior. “The installation of a month at Podium, a multibrand store. “The idea few Chanel pieces in these temporary stores is to show only some items of our collection. The certainly creates an exciting event,” he added. entire collection is available in the Chanel bou- Robert Burke, founder of New York-based tiques of that city.” consulting firm Robert Burke Associates, said “This type of project is both a brand-building opening a luxury megatower — commonplace exercise and a commercial potential,” added during the recent luxury boom — would likely Nathalie Franson, ceo at Azzaro, which oper- be frowned upon today. By contrast, a modest ated a pop-up store on London’s Mount Street pop-up unit “feels right for the market now. It’s for four weeks last February and March — and something slightly underground, and it’s not is now plotting another for the south of France a huge effort for the brand,” he said. “It’s ap- this summer. “It is a way of attaining new cus- proached as a marketing venture in creating tomers as well as reinforcing relationships with interest and buzz.” our current customers. It creates a direct link While a diverse range of players has dab- between the brand and its clientele.” bled in temporary stores recently, from Target To wit: At the end of its four-week London and Edun to beauty brand Roger & Gallet, stint, the specialty store Brown’s rang request- Burke credited Comme des Garçons for being ing to sell the few pieces remaining on the rails. the pioneer. Franson noted the temporary shop, which also In 2004, Kawakubo unveiled her first “guerril- launched an Azzaro capsule collection designed la” store in a former bookstore in Berlin’s artsy by Jemima Khan, was a “remarkable success on and edgy Mitte district — her concept more akin the press side.” to an artist’s squat than a luxury fashion temple. At present, Azzaro is only sold in the U.K. Rent had to be under $1,000 a month, and a max- through wholesale channels “so opening a pop- imum of $2,000 was spent on decor. up shop in a given market is the perfect way to Adrian Joffe, ceo of Comme des Garçons reach out to our customers and invite them to International, said the firm has since opened discover the ‘world of ’ Azzaro,” Franson said. and closed 31 such stores, with only the Vuitton, which opened a temporary store in Glasgow one remaining. He noted some of the Tokyo last winter to showcase a collaboration most successful guerrilla stores — in Athens, with Comme des Garçons and its iconoclas- Los Angeles, Berlin and Warsaw — have trans- tic designer Rei Kawakubo, will open another formed themselves into permanent stores. “We time-limited retail venture in the Japanese call them new generation stores, keeping the capital later this month while the French brand feeling of guerrilla with old stock mixed with awaits a permanent location at the new Seibu new, and permanent lines plus other brands, Ikebukuro department store in 2010. too,” he noted. The temporary store will look the part: sur- Next up for Kawakubo is a temporary “guer- rounded by scaffolding, wrapped in white mesh rilla brand” called Black Comme des Garçons and with a raw interior with sections defined by — born out of a desire to counter the feeling stacked wooden crates (although the products “of things being blocked or stopped because of themselves will sit on elegant, padded shelves). the crisis,” Joffe said — that will last for about Earlier this year, Yves Saint Laurent opened 18 months. As reported, 10 new points of sale pop-up boutiques in New York and (six in Japan and one each in New York, Paris, to showcase its Edition Unisex capsule collec- Louis Vuitton and Chanel are among the brands opening temporary stores. London and Hong Kong), are slated to open tion. Valerie Hermann, the company’s ceo, de- Vuitton opened one in Tokyo last year with Comme des Garçons, while Chanel simultaneously in June stocking best-selling scribed the shops as “a great success in terms created one in 2007 with the Japanese retailer Restir. Comme styles in black only. of communicating the message of the collec- “Our guerrilla stores were about experiment- tion” and for generating “important” sales. “As long as it is legitimately motivated, ing in new areas, new markets, getting new clients, collaborating with people outside a temporary store is another source of exposure for a brand, another point-of-sale, of the fashion business and bringing fresh air into retail,” Joffe said. “Now every- another means to capture new clients. Especially in the current climate, this can body’s doing it so it’s time [for us] to stop.” Pop-ups Offer Retailers Multiple Benefits NEW YORK — Temporary retail space was once considered A few years ago, the rule of thumb for short-term rent was the unfortunate stepchild of the real estate world. Landlords 50 percent of the long-term rate. “It became so popular over were loathe to do short-term deals when there were plenty the last two years that the rates are basically the same as of creditworthy tenants willing to sign five- and 10-year normal long-term rates,” Tarter said. “The going rate in SoHo, leases. Brokers weren’t fond of the abbreviated leases, either, for example, is $1,000 a day.” complaining the deals required a lot of work for little payoff. Magaschoni, which is exploring retail opportunities, made Not any longer. With the economy ailing, consumers cutting its first move with a pop-up store that bowed in Southampton, spending, retailers opening fewer stores and vacant space staying N.Y., in April. “We’ve been thinking of maybe opening our own empty longer, temporary stores are taking on a new luster. retail stores in an effort to promote the brand,” said president Short-term leases can be a stop-gap measure for property Monica Belag Forman. owners until a long-term tenant is found. Temporary stores Earlier this month, Loeffler Randall rented a temporary space allow retailers to test-drive a market without the commitment for a sample sale at 525 Broadway at Spring Street. Italian men’s and expense of a multiyear lease. “To me it’s inconceivable wear brand is working on a pop-up store and Tang that an owner would leave stores empty,” said Steve Tarter, a will soon unveil a pop-up unit in SoHo. Meanwhile, a Sunglass principal at Tarter Stats Realty. “If I can keep an owner’s cash Hut at 620 Fifth Avenue became a pop-up venue for Prada from flow going for two days or two months,” it’s worth it. April 29 to May 5. The house showcased special A popular use of temporary retail space is the pop-up shop, edition sunglasses as well as its spring collection. Sunglass Hut which allows a brand to make a quick splash in a market. While is owned by Luxottica, Prada’s eyewear licensee. the life of a pop-up shop may be brief, its impact on consumers Pop-ups also have been opening within existing stores, can be lasting. Pop-up shops often materialize in unexpected an arrangement that exposes customers to a new visiting locations, such as Yves Saint Laurent’s shop for Stefano Pilati’s brand and gives the store a different point of view. That was Target’s pop-up Bodega in New York had four different locations. Edition collection, which opened in February on Manhattan’s the idea behind DecadesTwo’s recent pop-up shop at Kiki de scruffy Great Jones Street. Montparnasse on Greene Street in SoHo. real estate.’ We’re joining forces with them to bring energy to “Landlords are a little more apt to look at [pop-ups] Scott Hahn, co-founder of Loomstate, teamed up with Jill the community and the brand.” creatively,” said Jeffrey Roseman, executive vice president and Platner for a pop-up store on Crosby Street featuring limited Target has been particularly adept in its use of pop-up shops, principal of Newmark New Spectrum, who worked on the deal edition baubles and organic T-shirts. A series of Loomstate pop- with the most recent being an 8,500-square-foot unit in Chicago for J.C. Penney’s 15,000-square-foot pop-up shop at 1 Times up events will be held this summer at August in Oakland, Calif., earlier this month called Bullseye Bazaar. “We credit ourselves for Square in 2006. “They had a big coming out party,” Roseman and Chicago. Last week, an event at Chicago’s Apartment Number pioneering [pop-ups],” said Joshua Thomas, a Target spokesman, said. “Penney’s doesn’t have a store in Manhattan. They did a 9 offered custom Loomstate T-shirts and Van’s eco shoes. who said the company has done 13 or 14 of them since 2002. great job.” “Loomstate is taking ownership of space inside another “Each pop-up has a new layer to it. The Target Bodega in New Roseman said temporary stores are “geared for companies retail setting,” Hahn said. “It’s kind of like a consignment York City had four different locations. Luella Bartley’s pop-up was that are sticking their toe in the water and thinking about relationship. Independent stores and boutiques are having a double decker bus store. They’ve been extremely successful. coming to New York. It’s like playing Off Broadway before trouble accessing credit and capital to get new inventory on Pop-ups are primarily a buzz marketing tool.” Broadway. You have a chance to get the kinks out.” store shelves. I tell them, ‘We’ve got inventory and you’ve got — Sharon Edelson WWD, TUESDAY, MAY 19, 2009 13 WWD.COM BEAUTY BEAT Haspel Inks Two New Licenses By Brenner Thomas Essence Panel Explores Beauty Purchasing Old-school suit label Haspel has begun to expand its product universe with the addition of two licensed categories. African-American women are vibrant shoppers of prestige beauty brands, Haspel, best known as the creators of the seersucker suit, detailed but their biggest challenge is finding products that are effective and effectively marketed toward the separate agreements with Excalibur, a division of AW Chang Corp., them. Such points were revealed last week at Essence’s Smart Beauty panel, which discussed which will design and manufacture men’s dress shirts and neckwear the African-American woman’s shopping experience in the prestige beauty market. for the brand. Essence beauty and cover director Mikki Taylor led a discussion on the findings with celebrity Haspel ties and pocket squares will hit department stores this fall; makeup artist Sam Fine, dermatologist Rosemarie Ingleton and Candace Corlett, president of dress shirts will follow for spring 2010. WSL Strategic Retail, at a breakfast at the Mandarin Oriental in Manhattan. “How thrilled my grandfather would be to see us expand the Haspel African-American women spend $7.5 billion annually on beauty products, but shell out 80 brand into exciting new categories,” Laurie Haspel Aronson, president percent more money on cosmetics and twice as much on skin care products than the general of Haspel, told WWD exclusively. market, according to the research. That difference comes as African-American women sample The announcement marks the first deals for Haspel Worldwide, many more products to find the ones that are most effective on their skin. a holding group Haspel Aronson, owner of the brand’s trademarks, “She spends a lot, but there’s little satisfaction. formed with Jim Ammeen of Neema Clothing and branding firm Graj + What keeps us buying is the hope that this product Gustavsen to transform Haspel will do what it’s supposed to do,” said Fine. — largely regarded as a sea- The type of beauty goods she’s searching for, ac- sonal suit maker — into an cording to the findings, are brands she trusts, that American lifestyle brand reflect her personal style and offer high-quality in- with multiple categories and gredients. She’s also more likely to buy products from tiers of distribution. Haspel aspirational labels — Chanel lipsticks and Versace Worldwide was created last WwD perfume, for example — than brands that are associ- summer in conjunction with ated with celebrities. the brand’s 100th anniversary. Men’s Nevertheless, Fine said she believes African- Ammeen, who had previ- ondy B

American women are looking for affirmations of ously worked with Haspel as the their own beauty through seeing spokespersons or maker of its tailored clothing, has led models of color in ad campaigns for beauty products. the charge to line up licenses. While One area that was void of faces of color were antiag- Mikki Taylor,Taylor, SamSam Fine,Fine, CandaceCandace CorlettCorlett the first deals are slightly behind

ing products, according to Fine. and RosemarieRosemarie Ingleton.Ingleton. Matt photo by schedule — plans initially called for “There’s no face of aging in the African-American new product by spring 2009 — Haspel community,” said Fine. “There’s Sharon Stone and Christie Brinkley, but no one who’s African- Aronson, who also runs a thriving American.” firearm wholesaler, said the pace of Essence has rolled out four installments of its Smart Beauty research. Smart Beauty’s first new deals should accelerate. session in 2004 discussed the spending power of African-American women, while the following “Having these licenses under year, Smart Beauty II: “Counter Intelligence” addressed the retail experience. In 2006, Smart our belt will help the market real- Beauty III: “Speak to Me” focused on language and messaging in marketing to the African- ize we are not just a suit company,” American consumer. she said. “We’re in talks with other — Stephanie D. Smith business now; things will start to pick up now.” Haspel Aronson did not detail what additional licenses could be finalized Alliance Boots Registers Profit this year, but original plans called for A look from Haspel’s tailored LONDON — Health and beauty retailer and pharmaceuticals wholesaler Alliance Boots on Monday sportswear as well as a contemporary clothing collection. reported net profits for the year ended March 31 of 101 million British pounds, or $173.9 million tailored clothing collection. at average exchange, up from 10 million pounds, or $17.2 million a year ago. “Haspel is an iconic American brand whose legacy of landmark Trading profits, which the firm defines as profit from operations before exceptional items, innovation and unique brand equity easily translates to other retail amortization of customer relationships and brands, and share of post-tax earnings of associates categories,” said Simon Graj, founding partner of G + G, which has an and joint ventures, rose 11.6 percent to 953 million pounds, or $1.64 billion. The privately owned ownership stake in Haspel Worldwide. company, which owns the Boots pharmacy chain, said revenues grew 15.5 percent on-year to 20.5 Haspel has approximately 500 points of sale in the U.S., including billion pounds, or $35.29 billion. Macy’s and Nordstrom. Alliance Boots’ health-and-beauty division, which incorporates retail sales of prescription and The brand’s furnishings partner Excalibur is best known as the li- over-the-counter drugs through its pharmacies as well as beauty products, reported revenues that censee of Nicole Miller neckwear. were up by 4.4 percent to 7.15 billion pounds, or $12.31 billion. In the U.K., beauty and toiletries sales hit 2.06 billion pounds, or $3.54 billion, an increase of 0.4 percent over the prior year. “Growth in toiletries [was] partially offset by lower sales of cosmetics and fragrances,” the company stated. “No. 7, our cosmetics and skin care brand, maintained its market-leading position in the U.K.” Arcandor, Metro Merger Denied Alliance Boots said in January it generated a pretax cost savings target set at the time of Alliance UniChem and Boots Group’s merger of 100 million pounds, or $172.2 million, 18 months By Melissa Drier ahead of schedule. “We are fully committed to the development and growth of Alliance Boots and believe that we are on track to become the world’s leading pharmacy-led health and beauty BERLIN — Speculation is again heating up that Germany’s two main group,” stated Stefano Pessina, Alliance Boots’ executive chairman. department store chains, Karstadt and Kaufhof, are heading toward — Brid Costello a merger. Karstadt, a division of the financially strained Arcandor Group, operates 120 doors in Germany with a workforce of about 30,000. The Metro Group’s 113 Galeria Kaufhof department stores in Germany em- Nabi Named Managing Director at Lancôme ploy about 25,000. LONDON — Youssef Nabi has been named Lancôme’s new managing director, a L’Oréal spokes- Although Metro said Monday that “no merger negotiations with man confirmed Monday. Nabi replaces Odile Roujol, who is to take on other yet-to-be-announced Arcandor are taking place,” a company spokesman confirmed that responsibilities within the group. As reported, Nabi has been replaced by Vianney Derville in Metro chief executive officer Eckhard Cordes sent a letter to the L’Oréal Paris’ top post. German economics minister regarding Karstadt. Metro further noted it is open to talks with both Arcandor and the government “with the objective of finding economically feasible solutions for the Karstadt department store locations.” MEMO PAD This is not the first time the prospect of one huge consolidated German department store group has captured headlines here, but the ON THE ROAD AGAIN: Hearst Magazines is trying to get personal to slow the advertising downturn. current speculation has been spurred by Arcandor’s increasingly pre- Cathie Black, president, and Michael Clinton have personally hit the road on a 10-city tour, armed with carious financial footing. a new, one-hour presentation that offers a more customized approach to advertising at Hearst titles. As reported, the embattled department store, catalogue and travel Meanwhile, the latest Media Industry Newsletter data showed double-digit ad declines. Clinton, group is seeking federal loan guarantees of 650 million euros, or $884 executive vice president and chief marketing officer/publishing director, said brainstorming for the million, by mid-June to secure its survival. Arcandor needs a further new plan began two years ago during a meeting in New Orleans, and the results are now showing up in 250 million euros, or $340 million, in financing this year, as well as an magazines from brands such as Intel, Pantene and Dior Beauty. additional 900 million euros, or $1.22 billion, over the next five years to Dior Beauty, for example, recently selected five Hearst titles to advertise in, including Marie Claire, carry out a radical restructuring program. Seventeen and O, The Oprah Magazine. All three are read by different audiences so the brand’s ad While observers have argued that the German government would be design, from text to images, varies in each. The variations can be dealt with in-house at Hearst since loathe to endanger the group’s 50,000 jobs in an election year, press re- everything is processed digitally. “There have been iterations of this before, but it’s never been done to ports suggest Arcandor’s request for guarantees is meeting with grow- this extent before,” Clinton claimed, declining to discuss pricing. ing resistance. The Metro Group has already said it opposes any state He added that most business functions at Hearst will soon be done digitally, from billing to PDF tear aid for Arcandor for regulative and competitive reasons. sheets. Almost a quarter of all subscriptions are coming from Hearst Web sites now and that number A merger of the two groups into what is being called Deutsche spiked to 48 percent for the new Food Network Magazine, which he refers to as the “new launch Warenhaus AG, or German Department Store Inc., would result in model.” That new model also includes shorter production cycles (starting with Cosmopolitan and rolling neighboring Karstadt-Kaufhof stores in many key cities. Many of out across the portfolio by yearend) to allow last-minute ads as companies buy closer to deadline; Karstadt’s stores are unprofitable, and observers predict that only about leaner staffs, and having just one associate publisher (so far, Veranda and the Food Network Magazine 150 of the consolidated 247 houses would be operable in the long run. each only have one). “We have to adapt to a changing world,” said Clinton. A spokesman for Arcandor was not available for comment Monday, In 2007, Hearst produced 415 pages of advertising in-house, and in 2008, almost 600 pages, or but has been quoted as saying Arcandor spies several hurdles to a pos- 22 programs, were published. This year, 16 programs have been completed, with three more about to sible merger, including federal antitrust approval for what would ef- close at press time. — Amy Wicks fectively create a German department store monopoly. 14 WWD, tuesday, may 19, 2009 WWD.COM Financial For full daily stock changes and more financial news, see WWD.com / business-news. Dillard’s Stock Up as Activist Stakes Drop 10 Best Performers By Gwen Moritz Dillard’s shares climbed $2.67, or 35.6 percent, to end the day at $10.18, their LITTLE ROCK, Ark. — Shares of Dillard’s first close at or above $10 since Oct. 10 DAILY COMPANIES P/E Volume Amt Inc. rose more than 35 percent Monday, and more than four times the 52-week the first trading day after it reported low of $2.50 reached on Nov. 21. The High Low Last %Change sharply higher earnings on Friday, but corresponding high of $19.25 was hit two investment firms critical of the com- last May 19. pany’s management benefited less from Johnson and Alex Dillard were 10.26 8.57 Dillard’s (DDS) - 4095802 10.18 35.55 the uptick than they would have a few among the eight Class B directors re- months ago. elected directly by the family of the 4.12 3.41 Saks (SKS) - 5554095 4.08 22.16 At the firm’s annual meeting at its late company founder, William T. corporate offices here on Saturday, Dillard, under a dual-class structure 4.84 4.12 Zale (ZLC) - 2089730 4.78 20.71 Dillard’s shareholders reelected the that itself was the subject of criticism four directors installed last year to from dissident shareholders. The other avoid a proxy fight with activist in- six are William Dillard 2nd, chief 3.64 3.07 Retail Ventures (RVI) 3.0 205133 3.63 17.86 vestors — even after those investors, executive officer; Mike Dillard and Barington Capital and The Clinton Drue Matheny (formerly Corbusier), 2.90 2.37 Glimcher (GRT) - 247755 2.75 17.52 Group, substantially reduced their both executive vice presidents; James holdings in the department store chain, Freeman, chief financial officer; 3.50 2.90 Hampshire (HAMP) - 8450 3.00 15.38 according to filings with the Securities Warren Stephens, ceo of Stephens Inc. and Exchange Commission. investment bank, and Dallas investor 17.55 15.59 Macerich (MAC) 11.1 4308898 17.25 14.85 The annual meeting was short, un- Robert Connor. William, Alex and Mike eventful and decidedly upbeat. Rather Dillard are brothers and Matheny is 8.19 7.30 Movado (MOV) 80.2 178240 8.17 13.16 than dwelling on the firm’s $241 million their sister. net loss in “extremely challenging” fis- The directors chosen last year in a cal 2008, president Alex Dillard’s pre- deal with disgruntled Class A inves- 11.5 10.17 Kimco Realty (KIM) 18.0 11771963 11.38 13.12 sentation focused on the surprisingly tors — specifically Barington Capital strong first-quarter results unveiled and The Clinton Group, both of New 10.00 8.92 Ramco-Gershenson (RPT) 11.6 69905 9.97 11.65 after the market closed on Friday. York — are James A. Haslam 3rd, While the bottom-line results were ceo of Pilot Travel Centers; R. Brad eye-catching — net income nearly Martin, chairman of RBM Venture Co. tripled to $7.7 million despite a 12 and the former ceo of Saks Inc.; Frank percent decline in net sales and a 13 R. Mori, co-ceo of Takihyo Inc., and 10 Worst Performers percent slide in same-store sales — di- Nick White, ceo of White & Associates rector Peter Johnson commented the of Rogers, Ark. DAILY COMPANIES P/E Volume Amt real story was on the balance sheet. In an SEC filing on Friday, Barington The company has reduced debt by $210 Capital revealed it had sold most of High Low Last %Change million in the past year and made op- its Dillard’s stock between Dec. 31 erating expense cuts that could save as and March 31. The Form 13F-HR de- much as $200 million in the current fis- clared only 1,634 shares of Dillard’s 0.40 0.26 Birks & Mayors (BMJ) - 13870 0.26 -38.10 cal year. stock valued at approximately $9,000 Comparing the just-concluded quar- as of March 31, compared with 828,445 4.01 3.66 Tefron (TFRFF) - 2600 3.66 -12.02 ter to the year-ago period, the cost of shares valued at $3.3 million at the end sales dropped 12.4 percent to $979.6 of 2008. 0.50 0.44 Charles & Colvard (CTHR) - 30500 0.47 -4.47 million; selling, general and administra- The Clinton Group also disposed of tive expenses were down 13.9 percent some 530,000 shares of Dillard’s stock to $414.3, and interest expense dropped during the first quarter, declaring less 0.67 0.59 fredericks of Hollywood (FOH) - 17322 0.61 -3.17 16.7 percent to $18.4 million. All met- than 1.1 million shares as of March 31 rics dropped as a percentage of sales as on its Form 13F-HR filed in April. 32.65 31.44 Inditex * (ITX:SM) 15.9 2863479 31.95 -2.11 well, although those declines all were As recently as mid-December, under 1 percent. Barington and the Clinton Group 9.19 8.65 Hot Topic (HOTT) 19.6 1434466 8.73 -1.13 Inventories were pared 18.4 percent were continuing to make demands on to $1.65 billion, 111.8 percent of sales, Dillard’s management — specifically 2.91 2.64 Tween Brands (TWB) - 587307 2.76 -1.08 compared to $2.02 billion, or 120.5 per- that it release details relating to the cent of sales, a year ago. Dillard family and CDI Contractors, a Dillard’s closed 21 stores in fis- Little Rock construction company now 2.95 2.89 CCA (CAW) 17.3 4300 2.92 -1.02 cal 2008, and Alex Dillard said still wholly owned by Dillard’s Inc. more underperforming stores could Shareholders also approved the 30.74 29.37 family Dollar (FDO) 16.3 3850476 30.04 -0.83 be sacrificed. The company currently issuance of an additional 1 million operates 306 department stores and shares of common stock to be used for 1.66 1.52 Unifi (UFI) - 201430 1.55 -0.64 nine clearance centers in 29 states, stock bonuses under an existing incen- although earlier this month it re- tive plan. The only two proposals on the * Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on vealed plans to close the location in shareholder ballot were both approved the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss Tullahoma, Tenn. by what the company called “substan- francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. On Monday, as retail stocks and the tial majorities.” major indices moved strongly upward, — With contributions from Arnold J. Karr Retail Stocks Surge 4.5 Percent By Evan Clark report today. On Friday, regulatory fil- Ittierre Taps Massimo Suppancig ings showed that Tod’s SpA chairman By Andrew Roberts Retail stocks jumped 4.5 per- and chief executive officer Diego Della cent after encouraging news from the Valle doubled his investment in the luxe MILAN — Italy’s Ittierre SpA took another step toward recovery on Monday, after troubled home improvement sector. retailer to 5.9 percent of the firm’s com- the administrators for the fashion company named Massimo Suppancig as manag- The S&P Retail Index advanced mon stock. ing director. 13.97 points to 326.86 as the Dow Jones P. Schoenfeld Asset Management, Suppancig, 49, led the turnaround of high-end accessories firm SpA, Industrial Average rose 2.9 percent, or which controls about 1.5 percent of Saks serving as chief executive officer from 2003 to 2007. He has also held senior roles at 235.44 points, to 8,504.08 — the index’s common stock, urged shareholders to back Hugo Boss AG and Escada AG. third close above 8,500 since Jan. 9. its efforts to make the luxury retailer and “The appointment of Mr. Suppancig is a show of strength to the market, the Some of the good vibes came from a the company board more accountable. P. licensors and the suppliers of the company,” the administrators stated, citing stronger-than-anticipated first quarter for Schoenfeld is trying to get stockholders Suppancig’s industry and turnaround experience. “It also underlines how de- Lowe’s Cos. Inc. The home improvement to withhold support for the reelection of termined we are to revive Ittierre [and] safeguard its industrial and commercial retailer reported earnings of 32 cents a director C. Warren Neel, who sits on the know-how.” share, ahead of the 25 cents analysts an- board’s governance and nominating com- Ittierre, which operates under license the Just Cavalli, VJC Versace, Versace ticipated and enough to give investors mittee. P. Schoenfeld has been critical Sport, C’N’C Costume National and Galliano labels, filed for the Italian equivalent hope for upside potential in the retail of Saks’ governance, and the investment of Chapter 11 bankruptcy protection in February after running out of cash. and housing markets. group is trying to reduce directors’ terms Since then, administrators Andrea Ciccoli, Stanislao Chimenti and Roberto The fashion world mostly tagged along to one year from three years. Spada have secured a 30 million euro, or $40.5 million at current exchange, line of for the rally, but some firms surged on Most European fashion stocks rose credit, which allowed Ittierre to restart its engines and continue day-to-day opera- their own headlines. Monday, including: PPR, up 4.4 percent tions, and secured the Just Cavalli license through 2014. Dillard’s Inc. shot up 35.6 percent to to 58.40 euros, or $78.83; Richemont, The triumvirate has until August to present a restructuring plan. Isernia, Molise, $10.18 after the company reported Friday 4 percent to 23.52 Swiss francs, or Italy-based Ittierre employs 772 people. that its first-quarter earnings almost tri- $20.98; Marks & Spencer, 3.6 percent to Parent company IT Holding SpA, which also owns the Gianfranco Ferré, pled to $7.7 million. 339.25 pence, or $5.15, and LVMH Moët and Extè brands, followed its production and licensing subsidiary into administra- Shares of Saks Inc. increased 22.2 Hennessy Louis Vuitton, 3.5 percent to tion at the end of February. percent to $4.08 ahead of its first-quarter 60.03 euros, or $81.03. WWD, TUESDAY, MAY 19, 2009 15 WWD.COM

Dr. Wu Jianzhong, chairman of Execs: Retail Faces Long Recovery Chinese supermarket and convenience store retailer Wumart, said the door to By Andrew Roberts Traub said, extending this thesis to luxury. create investment opportunities for retail- the country was “wide open,” adding “In recent years, the prices of luxury ers with access to capital, delegates said. that $700 billion of domestic household BARCELONA — There may be “green goods have skyrocketed to levels that are Forever 21 ceo Christopher Lee said savings were up for grabs. B.S. Nagesh, shoots” in the global economy but the no longer sustainable. Now we are in a the U.S. fashion brand was looking to managing director of Indian department consensus at the World Retail Congress new era,” Traub said. open a large-scale unit on London’s store chain Shopper’s Stop, said retail- here was that the retail sector had some Accordingly, he called for high-end Oxford Street as the first step in a possi- ers needed to come to India in the next way to go before returning to bloom. retailers and luxury brands to work to- ble expansion into Europe. “It can’t be a five years “or don’t bother. Opportunity is Many delegates at the third edition of gether to reevaluate pricing strategies small box. We need to create some kind of there but don’t miss the bus.” the event, which ran May 6 to 9, expressed and the role and importance of second- presence,” he said, adding the company Patrick Chalhoub, co-ceo of Dubai- uncertainty over the future, describing ary lines. had yet to identify an appropriate site. based luxury goods and fashion distribu- the recession as the worst they had ex- Concetta Lanciaux, ceo of Switzerland- Forever 21 is also targeting empty tion company Chalhoub Group, said that perienced. Some predicted the industry based Strategy Luxury Advisors, dis- department store space in the U.S. while the Middle East had been hurt by could weather another 18 to 24 months of missed the notion that pricing of luxury “Because of the deals we can strike, we the financial crisis — more than $350 bil- turbulence before making a full recovery goods had been compromised, saying get very good value per square foot and lion of developments have been put on — and even then not to previous levels — rather, “If there’s one single moment af- that allows us to experiment with new hold there — the slowdown in the region despite renewed forecasts the U.S. econ- fecting our business, it’s trading up.” product lines,” Lee said. was more psychological than actual. omy could start to grow again by the end She explained that “copycat luxury” Harrison said funding was avail- “The mind-set there is not to live on of this year, followed by China. or “bubble” brands would adjust their able for companies with “strong brands credit,” Chalhoub said. “This makes us With consolidation inevitable and prices down now — and be exposed for and profitable business models,” citing much more positive.” restructuring or liquidation a looming having overcharged by doing so — while American Apparel Inc. and Tiffany & Co. He said the immediate challenge was threat, retailers said they were focused “true” luxury brands would hold or even as recent examples, but that the nature to adjust to a market, which was growing on survival and how to stimulate con- increase prices and add value by upping of deals would change. at a normal pace compared with the gold- sumer spending. This meant disciplined quality and innovation. Dr. William Fung, managing director en years of 20 to 30 percent increases. The cost control and inventory management; Deloitte’s Janiak said consumers of all of Hong Kong-based sourcing giant Li & region is set to grow 2 percent this year. working harder to create a compelling means were wearing cost consciousness Fung Ltd., warned against protectionism In tapping emerging market demand, value proposition for the consumer; fo- as “a badge of honor” and anticipated and called for governments to match their experts urged retailers to understand cusing on the shopping experience, par- that department stores would respond to rhetoric with action, allowing the free local idiosyncrasies and not take a blan- ticularly service; aligning communica- the shift to value from brand by launch- flow of trade. He also anticipated price ket approach to cross-border expansion. tions and exploring new channels, and ing their own private labels. deflation of between 5 and 10 percent this “Cut and paste doesn’t work,” said having the courage to innovate. The mes- Harvey Nichols ceo Joseph Wan said year due to falling commodity prices. Mark Olbrich, director, supervisory board sage was clear: adapt or die. the U.K.-based specialty store was “in the “This is not good news for the supply of Komex SA. “Your concept will work if In a keynote address, Marvin Traub, early stages” of doing just that, developing side but it is good for retailers operating it’s good enough but you need to do your president of Marvin Traub Associates and women’s and men’s apparel, leather goods in this difficult environment,” Fung said. research.” former president and chief executive offi- and shoes under the Harvey Nichols Ajay Kapur, chief global and Asia Warnaco Sportswear Group president cer of Bloomingdale’s, said it was incum- label, which it would launch “in the near strategist at Asian financial services firm Frank Tworecke concurred. “It is impor- bent on retailers to understand the “fear as future.” Wan said Harvey Nichols would Mirae Asset, said long-term growth would tant to understand what equity you can well as guilt that has gripped the consum- also allocate marketing spend for the first come from emerging markets, where the transfer from the U.S. to other parts of er” and “create a more positive attitude for time to targeting tourists and widen its status-seeking middle class is set to rise the world,” Tworecke said, admitting, “at the consumer as well as our business.” offer to 15- to 20-year-olds. to 16 percent by 2030 from 5 percent. least 10 percent of our store openings “Value is the priority, not necessarily Financo Inc. chairman Gilbert W. Delegates cited opportunities in China, are mistakes.” He also said Warnaco inexpensive or sales, but consumers will Harrison said: “[The market is] over- Korea, Southeast Asia, India, the Middle planned to add more floor space for its focus on products with superior quality stored, overbranded and overpriced.” East, Russia and Turkey, particularly in brands in Eastern Europe, the Middle and functionality at an accessible price,” As a result, market conditions would second-tier cities. East and Asia.

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For more career opportunities log on to WWDCareers.com. Call 1.800.423.3314 or e-mail [email protected] to advertise. Spaces Designer Accessories firm seeks designer with COMMERCIAL experience in hair accessories, costume jewlry and cosmetics. E-mail REAL ESTATE PATTERNS, SAMPLES, Printing Service resume to: [email protected] High tech reactive digital prints on PRODUCTIONS knits and woven in any size; fast service. All lines, Any styles. Fine Fast Service. Contact: [email protected] Designer / Sales Coordinator, Call Sherry 212-719-0622. $75,000+ Ft.Lee, NJ PATTERNS, SAMPLES, Int’l knit mfgr seeking 5 + years expe- Showrooms & Lofts rienced designer to work with major BWAY 7TH AVE SIDE STREETS PRODUCTIONS retail groups. Please email or fax Great ’New’ Office Space Avail Full service shop to the trade. ACCESSORIES PRODUCTION COORDINATOR resume with salary history to : ADAMS & CO. 212-679-5500 Fine fast work. 212-869-2699. Ideal candidate s/b a quick learner, self motivated that accepts addtl tasks [email protected] / 201-461-6559 in this ever-evolving position. Will handle the entire production process of: INTRODUCING hangbags, small leather goods, jewelry, shoes. Min of 3 + years of acces- MIS MANAGER sories production exp req’d. Exp w/overseas vendors, sourcing & accessories Apparel Company needs a sharp intelli- construction. Computer skills a must (Excel, Photoshop & Illustrator). gent person to manage PC based apparel system. EDI, ASN, mapping experience PRODUCTION ASSISTANT essential. Knowledge of major retailer Seeking candidate with 2yrs exp. min. working with overseas fty/suppliers. requirements, Microsoft products, net- working knowledge very helpful. Midtown Must be highly motivated person who is detailed oriented, has excellent Manhattan location. Send resume, salary WWDCAREERS.COM communication and computer skills a must. requirements: [email protected] An exclusive new careers SHOE DESIGNER channel on WWD.COM Seeking a creative designer with 2-5 years experience, an ability to sketch SOURCING COORDINATOR (both hand, Photoshop and Illustrator) and posess strong technical knowl- Mamiye Brothers, Inc is seeking qualified candidates with good knowledge of edge. Will report directly to Mr. Phillip Lim & have the opportunity to be a garment construction for pre-production part of a brand new launch of our Women’s & Men’s Shoe Collection. activities with our product development staff and production follow-up with our 3.1 phillip lim offers excellent benefits & competitive compensation, the en- overseas offices, agents, and factories. Min. of 3 yrs Junior apparel import vironment is friendly but fast paced. We’re committed to developing our exp, a formal education in textiles and people, recognizing talent and supporting w/ career progression. apparel, and fluency in either Mandarin or Cantonese, req’d. Strong verbal and Please send all resumes via email to: written communications skills and PC proficiency with Word and Excel are [email protected] / or fax to: 212 354 6579 essential. Email resume to: [email protected] TRACKING THE RAPID PULSE OF YOUNG CONTEMPORARY FASHION FOR SENIOR EXECUTIVES PHOTO BY ROBERT MITRA AND INFLUENCERS WORLDWIDE

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