PARIS, FINI PARIS, at the final A look the Paris of days Collections, which included Chanel, Miu Louis Vuitton, Miu and more. 48 p. Features,

AN ACTIVE AN ACTIVE WORLD fitness boutique From latest in textiles to the a and Ones to Watch, the booming look at market. activewear 22 p. In Focus,

SLIM VS. VS. SLIM SLOUCHY suit a looser With bubbling silhouette wear men’s up, retailers designers and taking sides. are 32 p. M Agenda, THE

QUIET QUIET

around, and they’re aiming for even bigger things. bigger even and they’re aiming for around, 800 built one of the most innovative department store retailers retailers department store built one of the most innovative The Nordstroms — Jamie, Pete, Erik and Blake — have stealthily stealthily — have Erik and Blake Pete, — Jamie, The Nordstroms

JAPAN ¥1500 JAPAN CHINA ¥80 HONG KONG HK100 INDIA GIANTS US $9.99 $13CANADA UK £ 8 €EUROPE 11

Fashion. Beauty. Business. Business. Beauty. Fashion.

No. 2 No.

2015 2015 OCT OCT

THE QUIET GIANTS “This [the slouchy suit] is dangerous.” JOSEPH ABBOUD AMERICA’S COTTON PRODUCERS AND IMPORTERS. Service Marks/Trademarks of Cotton Incorporated. © 2015 Cotton Incorporated. full of cotton. performing synthetics. Soitlookslike the future is moisture aswell asor better than many top- discover cotton canbeengineered to manage Incorporated’s branded technologies, you’ll performance fi innovations that reinvent cotton asa true through application of new technological Today, cotton’s naturalproperties canbeenhanced ber. Through the useof Cotton cottoninc.com PR DIGITAL DAILY DESIGNER WEB COORDINATOR PRODUCER PHOTO SAN FRANCISCO, TECHNOLOGY DIRECTOR PARIS, GENERAL ASSIGNMENT PARIS, EDITORIAL ANDWEBASSISTANT REPORTER, PARIS, SENIORBUSINESSNEWSEDITOR PARIS, EUROPEAN BEAUTY EDITOR NEWYORK, FASHION ASSISTANTS NEWS LOS LONDON, EDITORIAL COORDINATOR SPORTSWEAR FURS &INNERWEAR FASHION ANGELES READY-TO-WEAR &SPORTSWEAR NEWS FASHION FINANCIALNEWSANDANALYSIS ACCESSORIES EYE SENIORFASHION FEATURES EDITOR BEAUTY EDITORS SENIOREDITORS, FINANCIAL EDITOR SENIOREDITOR, RETAIL SENIOREDITOR, SPECIAL PROJECTS, EUROPEAN FASHION/SPECIAL REPORTS EDITOR

Maxine EllenThomas Wally Misty White Sidell Kayana Kelsi Cordwell Zimmerman

TEXTILES &TRADE

DEPUTY EDITOR,DEPUTY DATA ANDANALYSIS NEW YORK, EDITORIAL ASSISTANTS SENIOR EDITOR, SPECIALTY RETAIL ACCESSORIES MARKETDIRECTOR PARIS, SENIORFASHION EDITOR BUREAU CHIEF, LOS ANGELES BUREAU CHIEF, WASHINGTON FASHION MARKETDIRECTOR MILAN, FASHION ANDNEWS DEPUTY MANAGINGDEPUTY EDITOR ASSISTANT ONLINEEDITOR ASSOCIATE PHOTO EDITOR PHOTO STUDIO ASSISTANT SENIOR PRESTIGE MARKET SOCIAL MEDIAMANAGER PHOTO STUDIO MANAGER DEPUTY FASHIONDEPUTY EDITOR SENIOR FASHION EDITOR BUREAU CHIEF, LONDON MEN’S MARKETEDITOR PREPRESS ASSEMBLY BUREAU CHIEF, MILAN WEB EDITOR, EUROPE READY-TO-WEAR AND CREATIVE DIRECTOR SITTINGS DIRECTOR FASHION DIRECTOR MANAGING EDITOR, ASSOCIATE EDITOR ASSOCIATE EDITOR MANAGING EDITOR SENIOR DESIGNER PHOTOGRAPHERS MEN’S REPORTER DIGITAL IMAGING NEWS DIRECTOR READY-TO-WEAR, SENIOR EDITOR PREPRESS PRODUCTION SITE DIRECTOR COPY EDITORS PHOTO EDITOR ART DIRECTOR ASIAN EDITOR DESIGN DEPARTMENTDESIGN EXECUTIVE EDITOR, BEAUTY GROUP DESIGNDIRECTOR COPY CHIEF PUBLIC RELATIONS CORRESPONDENTS MARKET EDITORS DESIGNER DESIGNER LONDON PHOTOGRAPHY PHOTO STUDIO Edward Nardoza EXECUTIVE EDITOR John B. Fairchild BEAUTY DIGITAL EDITOR INCHIEF James Fallon Bridget Foley MEDIA COPYDESK WWD.COM Robb Rice Pete Born 1927 —2015 EYE MEN’S EDITOR

Christina Mastroianni Pooja Bhaskar Robert Tutton Ryan Richmond Kristen Tauer Michelle Preli David Lee Chin Alex Sharfman Danielle Gilliard, DavidPodgurski, Maureen Morrison-Shulas Thomas Iannaccone George Chinsee, Steve Eichner, Emily Taylor Eileen Tsuji Katrina Brown Jenna Greene Ash Barhamand Jewelyn Butron Robyn Boehler Christa Guerra Geraldson Chua Nick Mrozowski Maghan McDowell Laure Guilbault Anne-Aymone Gheerbrant Paulina Szmydke Joelle Diderich Laurent Folcher Jennifer Weil Andrew Shang, Ashley Davis, Tara Bonet-Black, William Cotto, Alessandra Turra Khanh T.L. Tran Lorelei Marfil Nina Jones Ally Betker, Leigh Nordstrom Kristi Garced Alexandra Steigrad Rosemary Feitelberg Bobbi Queen Rachel Strugatz Molly Prior Lauren McCarthy, Debra Borchardt Aria Hughes Luis Campuzano Alex Badia Jean E. Palmieri Taylor Harris, ErikMaza Mayte Allende Roxanne Robinson Jessica Iredale Julie Naughton Sharon Edelson Jenny B. Fine Bobbi Queen Kristi Ellis Amanda Kaiser Marcy Medina Luisa Zargani Samantha Conti Lorna Koski Arnold J. Karr, Friedman Arthur David Moin Alex Badia Donna Heiderstadt ZaczkiewiczArthur Lisa Lockwood Evan Clark Miles Socha Dianne M. Pogoda Peter Sadera

Vicki M.Vicki Young ,

Kari Hamanaka

PHOTOGRAPH: MONCLER 48 Paris, Part Deux 42 Quiet Giants Features The even bigger things. around, aimingfor andthey’re storedepartment retailers one ofthemostinnovative Nordstrom have stealthily built Miu andmore. Vuitton,included Chanel,Louis which Collections, the Paris

Erik, Pete,Erik, Blake andJamie A lookatthefinaldays of

GIOVANNI GIANNONI Contents

Paul Jowdy LLC Laboratories, Clinique © SENIOR VICE PRESIDENT, GROUP PUBLISHER Pamela Firestone ASSOCIATE PUBLISHER

ADVERTISING INTERNATIONAL FASHION DIRECTOR, Renee Moskowitz RMM MEDIA EXECUTIVE DIRECTOR, MEN’S Brett Mitchell BEAUTY DIRECTOR Carly Gresh AMERICAN FASHION & Jennifer Petersen LUXURY DIRECTOR ACCOUNT DIRECTOR Samantha Hartje ACCOUNT EXECUTIVES Amy Keiser Shannon Fitzgerald SENIOR CLIENT SERVICES MANAGER Joanna Block CLIENT SERVICES MANAGERS Annie Belfield Tina Schissel REGIONAL OFFICES/INTERNATIONAL OFFICES WEST COAST DIRECTOR Jill Biren +1-323-965-7283 EUROPEAN ACCOUNT DIRECTOR, ITALY Giulia Squeri +39-02-722-33602 Jim Bankoff, ceo of Vox Media ACCOUNT DIRECTOR, ITALY Olga Kouznetsova +39-02-722-33603 SENIOR SALES COORDINATOR, ITALY Emanuela Altimani EUROPEAN DIRECTOR, FRANCE Valérie Deschamps-Wright “I get inspiration from companies that have had +33-1-44-51-07-611 EUROPEAN SALES REPRESENTATIVE Marjorie Thomas to reinvent themselves and do things rapidly.” +33-240-31-6541 ADVERTISING ASSISTANT, FRANCE Pascale Rajac Media People, page 36 DIGITAL/MARKETING/CREATIVE SERVICES MARKETING DIRECTOR Shannon Nobles CREATIVE DIRECTOR, MARKETING Cass Spencer DIGITAL MEDIA STRATEGIST Cassie Leventhal DIGITAL SALES PLANNER Suzette Minetti AUDIENCE MARKETING VP & SENIOR EXECUTIVE DIRECTOR Ellen Dealy CONSUMER MARKETING DIRECTOR Peggy Pyle SENIOR DIRECTOR, DIGITAL MARKETING Janet Menaker & STRATEGIC DEVELOPMENT Agenda PLANNING & OPERATIONS DIRECTOR John Cross SENIOR DIRECTOR, Randi Segal INSTITUTIONAL SALES SENIOR ONLINE MANAGER Suzanne Berardi Fashion 8 Markets 18 SENIOR MARKETING MANAGER Tamra Febesh For Bruno Magli, the path back Believe it or not, it’s actually a ASSOCIATE MARKETING MANAGER Lauren Busch PRODUCTION to the luxury market is lit with its good time to invest in retail and heritage . . . Model Call. apparel stocks . . . Ken Seiff of PRODUCTION DIRECTOR Kevin Hurley PRODUCTION MANAGER Providence Rao Beanstalk Ventures discusses SUMMITS & EVENTS online consumer patterns and VICE PRESIDENT, NEW VENTURES & GM Amber Mundinger new technologies. EXECUTIVE EDITORIAL DIRECTOR Mary Ann Bacher DIRECTOR, ATTENDEE SALES Kim Mancuso SPONSORSHIP DIRECTOR Alexis Coyle Beauty 12 Retail 20 DIRECTOR OF Amelia Ewert Meet the Honorees: Cosmetic Fashion IPOs: The splashy public EXPERIENTIAL MARKETING Executive Women will honor offering isn’t the brass ring it was FAIRCHILD PUBLISHING LLC seven at the Waldorf this just a few years ago . . . How ceo’s Stephanie George week . . . Smell Test. say “goodbye.” PRESIDENT AND VICE CHAIRMAN EDITORIAL DIRECTOR OF Michael Atmore FOOTWEAR NEWS & DIRECTOR OF BRAND DEVELOPMENT FINANCE DIRECTOR Devon Beemer Accessories 16 32 DIRECTOR OF EUROPEAN OPERATIONS Ron Wilson Paris Wrapping: As the season The move from slim to slouchy wound down, there was still suits creates a conundrum for

plenty of sizzle in accessories retailers . . . In the Spotlight: WWD AND FAIRCHILD PUBLISHING LLC from the City of Light. Stormy Kromer . . . M Briefs. ARE DIVISIONS OF PENSKE MEDIA CORPORATION Jay Penske CHAIRMAN & CEO Bringing the best to everything she touches. VICE CHAIRMAN Gerry Byrne EXECUTIVE VICE PRESIDENT, George Grobar STRATEGY AND OPERATIONS EXECUTIVE VICE PRESIDENT, Paul Woolnough Lynne Greene BUSINESS AFFAIRS DEPARTMENTS SENIOR VICE PRESIDENT, Craig Perreault BUSINESS DEVELOPMENT 6 Social Studies “Jem and the Holograms” — is back in all her GENERAL COUNSEL & Todd Greene From Account Executive to Group President SVP HUMAN RESOURCES The best and worst in social media, what’s bubblegum-pop glory. VICE PRESIDENT, CREATIVE Nelson Anderson trending, whom to follow. • Report Card Graded from D.C. to Hollywood, VICE PRESIDENT, FINANCE Ken Delacazar to CEW Lifetime Achievement Award honoree. Cate Blanchett and Don Cheadle earn top marks, VICE PRESIDENT, HUMAN RESOURCES Tarik West VICE PRESIDENT, ENGINEERING Gabriel Koen 22 In Focus: Activewear Trey Gowdy, not so much. DIRECTOR OF COMMUNICATIONS Lauren Gullion Lynne’s legacy at The Estée Lauder Companies From boutique fitness to the latest in textiles and DIRECTOR OF OPERATIONS Joni Antonacci Ones to Watch, a look at the booming activewear 64 Think Tank CONTROLLER Young Ko is impossible to overstate. Clinique. Aveda. Origins. SENIOR PROGRAM MANAGERS Christina Yeoh, market. When East Meets West: Brian Buchwald and Derek Ramsey Andrew Roth of Bomoda discuss the increasing DIRECTOR, ADVERTISING OPERATIONS Eddie Ko Ojon. Darphin. The Men’s Skincare Group. 36 Media People importance and purchasing power of the Chinese DIRECTOR OF TALENT ACQUISITION Andy Limpus Jim Bankoff, chairman and chief executive officer DIRECTOR OF IT OPERATIONS Rick Gascon, tourist in the global retail market. & PRODUCTION Matt Williamson She grows brands, nurtures talent and creates of Vox Media, isn’t exactly a typical start-up ceo. SENIOR IT ANALYSTS Carl Foner Here’s why. 66 Finale Aramis Miranda-Reyes IT ANALYSTS Don Gerber a world of endless innovation. The Hills Are Alive: Dior created a mountain Fred Baez 38 Eye in the middle of Paris for its runway show. • Parties Hollywood and the art world collide at the TO CONTACT WWD Hammer Museum’s Gala in the Garden in L.A. . . . EDITORIAL +1-212-256-8130 ADVERTISING +1-212-256-8102 As the New York Film Festival drew to a close, the CIRCULATION +1-515-237-3650 Hadids were the talk of the New York party circuit. • Arts & Culture With Aubrey Peeples, Jem — of COVER ILLUSTRATION BY MARCOS CHIN Mark Mann by Photograph

4 OCTOBER 2015, No. 2 WWD.COM Social Studies EDITED BY KRISTEN TAUER THE WEEK IN SOCIAL MEDIA Best Worst

“Who’s the Queen of Awesome? Happiest birthday to @gwenstefani”

@aurelieduclos @caradelevingne The King of Happy couldn’t find a more The struggle is real. gleeful photo of the birthday girl?

@marhunt @pharrell Model Musician

Caption Change!

@amandasanchez @pascalbraultt

Chanel built an airport terminal worth getting delayed in for its spring show. COLLECTIONS

See the Season’s Distinguished Designs

“We realize that our previous caption could have been perceived in a way that is not in line with and Defining Moments An Elie Saab couture gown and the our values, so we’ve removed it. This photo is one of many that is meant to inspire our followers to Eiffel Tower set the romantic scene for Alice Temperley elevated her Somerset for #NEVERSTOPexploring and to live life to the fullest.” Angelababy and Huang Xiaoming’s nuptials. John Lewis collection with striking imagery. The North Face fell into some controversy and discovered the darker side of bridge jumping.

@eliesaabworld @alicetemperley @thenorthface Fashion brand Fashion designer Activewear brand ISSUE DATE: NOVEMBER 18, 2015 AD CLOSE: NOVEMBER 4, 2015 Best in Show Let’s Follow MATERIALS DUE: NOVEMBER 9, 2015 Top Shows by Engagement Across Fashion Month: Here are the shows that garnered the highest engagement on Instagram.

2. Givenchy 1. Balmain* 5. Diane von 3. Christian Dior* Furstenberg 7. Burberry 8. Coach PARIS FW

4. Chanel 6. Polo NEW YORK FW LONDON FW

9. Kanye West 10. Jeremy Scott

*Includes #InstaShoot initiatives Fashion 360 million Measured 44 million FAMILIAL FASHION STYLE SKETCH interactions related to either via likes and Month unique NYFW, LFW, MFW or PFW, comments Engagement accounts between Sept.10 and Oct. 7 FOR MORE INFORMATION, PLEASE CONTACT PAMELA FIRESTONE, (Source: Instagram) @veronicaisnowmrsk @aaronfavaloro ASSOCIATE PUBLISHER AT 212 256 8103 OR [email protected] Businesswoman Illustrator

6 OCTOBER 2015, No. 2 WWD.COM Follow Us @WWD EDITED BY DONNA HEIDERSTADT he notion of heritage comes product for the brand’s latest incarnation. Though He declined to specify the number of doors in up more than a dozen times Bruno Magli has previously offered women’s which the label is sold. The brand’s own retail Fashion during an hour-long conver- footwear and bags, both of which exist in its Asian footprint, however, will soon rev up again, with Agenda sation about Bruno Magli, channels, Marquee chose initially to focus solely on the introduction of stand-alone Bruno Magli stores the 80-year-old Italian lux- men’s footwear, which comprises 95 percent of the in the U.S. The company, which has one store in ury brand poised for a come- brand’s U.S. business. Italy and 72 across Asia, has teamed with Luxury back after several years of “There are legacy customers that have been with Retail Partners, with Kramer Design Group working turbulence. the brand for 40 years,” Baker said. “There’s also on the retail concept, to plot the North American “There is incredible her- an aspirational customer around 29, 30, who is at strategy. Up first: Miami, with a store scheduled to itage, history and legacy behind this brand,” a time professionally where he can start rewarding be open by the end of 2016, followed by Las Vegas Tsaid Cory Baker, chief operating officer of Mar- himself and invest in luxury.” and New York. Europe will also get new stores: quee Brands. DeVirgilio cited a white space in the market. retail development is in the works in Italy, Spain, In January, Booker and partner Michael DeVir- “Where Cole Haan is at the bottom of this range, London and Germany. In total, the company plans gilio, president of Marquee, an acquisition, licens- the next level is Ferragamo and there is nothing in to open 14 stores over the next three years. ing and development company sponsored by between in terms of price tier-ing.” What will be in these stores is also of note. Neuberger Berman Private Equity and founded last The new Bruno Magli plans to target this level Expanding upon its core men’s shoe business, year, acquired the Bruno Magli brand and related with a range of shoes to take the customer from Bruno Magli plans to launch women’s footwear by Keeping intellectual property assets from Bruno Magli SpA. work to weekend, with prices ranging from $415 to the end of this year. “Our crowbar into that space This marked Marquee’s first acquisition; it has since $550. The aesthetic is based on heritage, but with is our authenticity,” said Vando. “We’re going to taken on Ben Sherman. further expansions into fashion-forward details, show [retailers] a beautiful collection of women’s The purchase follows nearly two decades of such as croc-stamped leather, hand burnishing and shoes that can stand next to men’s in terms of It Real uncertainty for Bruno Magli, during which the elongated lasts. design and quality.” company, founded in 1936 by siblings Marino, “We didn’t go in there and say, ‘These guys have Still in the early stages of development, DeVirgilio For Bruno Magli, Mario and Bruno Magli, underwent an extended been around for 80 years and don’t know what expects the women’s line to compete with the likes game of musical chairs with owners: in 2001, a they’re doing,’” said Paul Vando, vice president of Jimmy Choo, Salvatore Ferragamo and Manolo the path back to Luxembourg-based investment fund acquired a of design at LJP. “We’re taking a classic look, but Blahnik. “It will be a well-balanced line. We’ve the luxury world is controlling interest from the family; in 2007, it making it more appealing to that younger guy.” already started to map out the multiple layers of was sold to U.K.-based private equity fund Fortelus Besides the main collection, the company is also [women’s] needs,” he said. “We need to be credible lit with its heritage. Capital, and in 2014, it was acquired by Da Vinci Invest AG, a Swiss fund. Around April 2004, the BY LAUREN MCCARTHY “The plan here is to brand’s U.S. unit filed for Chapter 11 bankruptcy, from which it exited in January 2005. develop the brand so Still, DeVirgilio views the past 15 years as not a red flag, but rather, a sign of resilience. “It was never a we’re delivering trends brand that bounced off the bottom as some brands that are accessible do,” he said. “It also has very good distribution and was in all the top doors, and the price point was but not intimidating.” very attractive to us. All it needs is some resources Cory Baker, Marquee Brands and support and brand management.…Over the 80 years of business, that turbulence was just six or seven years. I’m not too worried about it.” When asked about the state of the business upon — we are getting approached from the consumer, acquiring the brand, Baker demurred, “When we from the retailer. We think a good testing base will look at businesses from an investment perspective, be our retail stores. We’ll be able to hear directly we focus on the integrity behind the brand. Some- from the consumer.” times, when you get under the hood, you see a Beyond shoes, the company also plans an even- supply chain that is not optimal and you see what tual expansion into clothing. The team has enlisted fixes need to be made. The product quality is good, the help of designer Doo-Ri Chung to develop styles. BRUNO MAGLI but the supply chain and distribution is an issue.” PRESENT AND “From the outset, Bruno Magli was ripe for DeVirgilio detailed the company’s three-prong FUTURE expansion into lifestyle categories,” said Baker. “To strategy to correct its course. “First, the important help bring life to the vision and fashion direction of Above: Styles part was to get the brand at the level of awareness from Bruno these areas for growth, Doo-Ri was the right partner that it deserves. The second thing is to get the Magli’s spring to develop new styles for our upcoming men’s and product and pipeline working correctly. Third is men’s line. Here: women’s luxury collections.” The first styles will to execute the retail stores.” A sketch from be a men’s tailored program with suits, shirts, ties The company aims to generate annual global the upcoming and top coats, out for fall 2016. Women’s leather women’s line. retail sales of $500 million by 2020. and outerwear categories are also being developed, Last month, the brand introduced a fall advertis- though timing has yet to be finalized. ing campaign, a luxury, men’s wear-focused setup The goal of all this effort is building a lifestyle shot by David Rosenbaum. “We’ve probably done brand. “The core to our strategy is that this is a more marketing over the last six weeks than the launching a higher-end line, “Collezione,” mostly lifestyle brand,” said DeVirgilio. “We need to step brand has done over the last six years,” said Baker. priced between $625 and $675, and which runs to away from this being just a shoe company. In my “Men are much more sophisticated about their fash- $800 for fall boots. experience, people will pay a premium for lifestyle ion choices now. When they spend $400 or $500 “The plan here is to develop the brand so brands. Why would anyone buy Lanvin sneakers? on a pair of shoes, they want to know what they’re we’re delivering trends that are accessible but But they are credible because they are an aspira- getting. There’s a promise and a commitment that not intimidating,” said Baker. “We want to tional lifestyle brand. For us, we’re going to do we deliver with the brand and part of that is com- advance and be fashion-forward without being it the other way — we’re credible in the footwear municating to the end-consumer and letting them too in-your-face. In the past, there was a time category, so extending from that makes sense.” know first and foremost that Bruno Magli is here.” when prior ownership had gone a little too far. Added Baker: “When you look at the luxury To remedy what they considered the main When you inherit an 80-year heritage, you have space today, if you see a high-end brand that has problem at hand — supply-chain and distribution an obligation to the consumer.” almost as many doors as Starbucks, something is issues — Marquee tapped LJP International, a New To reflect the new look of the product and to getting lost. Our commitment is to deliver product Jersey-based brand sourcing, distribution and remedy prior distribution woes, Marquee and LJP that is only made in Italy. Consumers are becoming licensing partner. “Aside from just creating and decided to scale back the number of retail doors more educated. They want to know what they’re designing fantastic product, there is a distribution carrying the brand by roughly 25 percent. “It’s a spending their money on. If they know they are Michael DeVirgilio model, there is a sales engine, and there’s a mar- hard decision, as acquirers, to say, ‘We’re going to getting something of that [high] quality, they can and Cory Baker keting engine [in place at LJP],” said DeVirgilio. put a pause on that,’” said Baker. “But we’ve done feel better about what it is — as opposed to putting LJP also had a hand in readying the actual it and had good response.” another $700 into the Starbucks luxury world.” ■

8 OCTOBER 2015, No. 2 WWD.COM WWD.COM OCTOBER 2015, No. 2 9 MODEL CALL: KATIUSHA FEOFANOVA

Height: O“My big eyes are from my 5’7.5” father,” said Katiusha Feo- Hair: fanova, whose mesmerizing Light brown face and waist-length locks Eyes: have landed her editorials Blue-green Measurements: in Nylon, Harper’s Bazaar 31-23-34 China, Marie Claire Latin Agency: America and an assortment Request Models of other indie mags and look Hometown: books, despite her relatively Omsk, Siberia short stature, at least by [Russia] Instagram: industry standards. After @ attending a modeling school katiusha_feofanova as a pre-teen in her native Siberia — where she learned how to walk and pose — she landed her first contract with an agency in Moscow two years later. Now, the 20-year-old, Brooklyn-based rising editorial model — who cites fellow Russians Sasha Pivovarova and Natalia Vodianova as well as Behati Prinsloo as her favorite models — studies law and practices ballet in her spare time. — KRISTI GARCED

How did you start modeling? I was 11 when I went to a modeling school. Then, at 13, an agent from Rush Models found me. But I was really short, much shorter than now — I was like 5’5”. It’s impossible to be a model when you’re 5’5”.

What was it like traveling on your own at such a young age? It wasn’t scary for me, but I don’t really like flying. I just don’t like [the whole process] — carrying your bags, the airports, every- thing. But I feel really comfortable in New York. I know some people find it really busy here with so many people, but not me.

What’s the most challenging part of your job? Starting is the hardest. In Russia, we don’t have the same modeling market. You need to find a really nice modeling agency to help you get started, and it can be really difficult.

What’s your favorite memory from all of your experiences? When I was modeling in Paris, a group of us went up to The Netherlands for a photo shoot. We were on top of the mountains surrounded by snow and I was wearing a summer dress. I was crying. As Sandra says, no one gets anywhere by themselves. They were like, ‘You’re from Siberia. It’s always cold there, isn’t it? Drink some vodka [to warm up].’ And I’m like, ‘No!’ It goes without saying that La Mer has gotten everywhere because of [Laughs.] The photos looked good in the end, but you couldn’t even see the mountains or the snow. SANDRA MAIN CEW Achiever Award Honoree Here’s to the leader who raises us up and the lady who knows what luxury really means. Her vision and vitality keep us all ready for whatever comes next.

Sandra, now is your much-deserved turn in the spotlight, but your brilliance already precedes you in so many wonderful ways.

Congratulations from your La Mer team 10 OCTOBER 2015, No. 2 WWD.COM Photograph by AMY LOMBARD BeautyAgenda EDITED BY PETE BORN

CEW to Laud Its Brightest Seven top women executives will get cited on Friday for career achievements.

or 40 years, Cosmetic Execu- tive Women has been giving out awards recognizing the achievements of successful individuals in the beauty field. On Friday, seven women will be honored during a luncheon at the Waldorf Astoria. The number of recipients has grown over the years as more women gained influence Fin the upper ranks of the global beauty industry. Through the Seventies, Eighties and Nineties, the annual award events tended to focus on one individual, an indication of the scarcity of women in top corporate leadership roles. Since the turn of the millennium, slates of multiple winners began to appear, as gender equality became more pro- nounced in companies’ leadership roles. Carlotta Jacobson, CEW president, pointed out that not all recipients may have moved into the c-suite — “not yet. But they are moving the needle.” This year, Lynne Greene, group president of the Estée Lauder Cos. Inc., will receive the most presti- gious honor: the Lifetime Achievement Award. She is only the fifth recipient of the award, which was first presented to Estée Lauder in 1989, an event that put CEW on the map. Last year’s recipient was her son, Leonard A. Lauder, chairman emeritus of Estée Lauder Cos. Greene will be accompanied by five Achiever award recipients: Lorraine Coyle, senior vice president of U.S. sales at L’Oréal Paris; beauty Lynne Greene expert Shannon Curtin; Sandra Main, global brand Lifetime Achievement Award Winner president of La Mer at Estée Lauder; Rita Mangan,

Lynne Greene, group president most successful careers in the industry evolves. “The concept of Chubby Stick that generated an senior vice president, sales, education and retail of the Estée Lauder Cos. Inc., industry. the beauty business will continue estimated $140 million in retail strategies, Shiseido Cosmetics America, and Kathy describes her career as if it were a When she announced plans to get bigger [and] take on a larger sales. One of Greene’s most inno- book. That’s because she plans to to retire recently, the top Lauder definition,” she said. “It will become vative strategies was to power the O’Brien, vice president of skin and marketing begin Chapter Three, which most brass lined up to sing her praises. more democratic, too.” launch of Even Better Clinical with services for Unilever North America. people call retirement. “From the moment Lynne joined Greene has spent the majority a national TV campaign, a tactic “One needs a new purpose in us in 1976, I knew she was a star,” of her 40-year career at Lauder, typically used in mass launches. In addition, Sylvie Ganter, creator and founder Chapter Three,” Greene said. “I’m said Leonard Lauder, chairman minus a five-year detour at L’Oréal Greene’s achievements also of Atelier Cologne, will receive The Great Idea looking for lots of new beginnings.” emeritus. Fabrizio Freda, president USA’s Lancôme division. She has signaled a new approach for As just one idea, Greene, an avid and chief executive officer, moved through a succession of skin-care marketers, focusing Award for Fragrance Innovation, which will be pre- wordsmith, is contemplating turn- declared, “Lynne is an extraordi- top positions, including the presi- on solving skin problems like sented by International Flavors & Fragrances Inc. ing her metaphor into an actual nary leader, colleague and friend. dency of four Lauder divisions. dark spots and redness rather book. “It will not be fiction. I’m much Her vision, exceptional creativity She recently highlighted her than wrinkles, and has pushed to LVMH Moët Hennessy Louis Vuitton will receive a more interested in the truth. I plan and ability to develop outstanding proudest moments, both at expand the concept of in-store Corporate Empowerment for Women Award, and to give myself plenty of space to teams have inspired our people, Clinique: the May 2012 launch of service. Such foresight won her think about this and consider what built our brands and played an Even Better Clinical Dark Spot the respect of her team, who Mary Dillon, chief executive officer of Ulta Beauty, I want to do.” important role in growing the Corrector, which spawned a Greene has always championed. “I will give a keynote address. She should be able to find plen- company.” But Greene undoubted- reported $200 million retail sales don’t manage people,” she proudly ty of material after she officially ly will be thinking about more than franchise, according to industry said. “I encourage them.” Here and on the next page, the award recipients retires on June 30 from one of the just the past, especially as the sources, and the launch of the — PETE BORN are profiled. ► Greene photograph by D Dipasupil/FilmMagic by photograph Greene

12 OCTOBER 2015, No. 2 WWD.COM 14

OCTOBER 2015, No. 2 BeautyAgenda training andeducationfor the sales strategy andexecution and 2010.February There, sheoversees America, arole she’s heldsince strategies for ShiseidoCosmetics of sales, educationandretail storied career. honor inRita Mangan’s already Achiever award isjust onemore A Cosmetics Executive its first inashoppingmall. Asia unveiled aboutiqueinHongKong, out Asia. Recently, Atelier Cologne and openeddistribution through- the company set upsubsidiaries headed East,” saidGanter, noting fragrance. future “The iswe are in skincare andcosmetics than consumers are more interested conventional wisdomthatAsian rational aboutperfume,” shesaid. you can’t explain, there’s nothing care aboutscience. Fragrance “Makeup isallabout fashion; skin launch herpassionfor fragrance. called the “perfect” school, helping at HermèsParfums, whichshe she’s luckyhercareer pathbegan her dream into areality. Shesaid her thestrength to transform Ganter, addingCervasel gave to have theguts to jump,” said time? Sometimes you just have endorsements. by fashion housesorcelebrity waswhen theindustry driven built around cologneatatime the 2009launchof hermaison of boldmoves. Acaseinpointis Christophe Cervasel, isn’t afraid Atelier Colognewithherhusband Sylvie Ganter, at Walgreens. “My collection for and personal beauty care general merchandise manager recently group vice president, too,” saidCurtin, whowas most brands anditem launches, farewell to someof thesame and have alsobeenthere to say and item launchesto market welcoming countless brand Walgreens. in thebusiness—Wal-Mart and at two of thebiggest retailers profit-and-loss responsibilities past 15years, whenshehad customers, especiallyover the tomade itapriority understand store inhighschool. She’s always at herhometown department to sellingpremium fragrances businessdatesthe beauty back Shannon Curtin’s Mangan isseniorvicepresident Most recently, shecast aside “How didIknow itwas theright “I have hadtheprivilegeof Great IdeaAward for Fragrance Innovation

WWD.COM

who founded passionfor Sylvie Ganter Women blossom.” Now isthetimefor new ideasto everything hasto beabigbrand. only dowhathasbeendone. Not dedicated to concepts anddon’t have passionate peoplewhoare “Our needsto industry continueto themselves,” Ganter explained. less important thantheproduct stories. “Brands are becoming terials andintriguedwithproduct educated, interested inraw ma- maintains. They are more fragrance preferences, Ganter other doors. specialty department), NeimanMarcus and a relatively new scent specialty U.S. atSephora (where itanchors The collection isalsosold inthe N.Y.; Brooklyn, N.Y., andtwo inParis. stand-alone boutiques:inNoLIta, early next year. Thatjoinsfour will openinBergdorf Goodman However, thefirst shops-in-shop Los AngelesandSanFrancisco. ing boutiquesincitiessuchas U.S., withGanter focusing onopen- listshort for Atelier Cologneinthe in sales. of thecompany’s $40million-plus now produces about20percent as oneof herproudest career Macy’s Inc.-Federated merger corporate in1996. division. Manganmoved to Macy’s had absorbedtheoldBamberger’s Macy’s East, which, by thattime, president of cosmetics in1992at to cosmetics, risingto senior vice to-wear in1980. Shelater switched sey asasalesmanagerinready- Bamberger’s divisioninNew Jer- Federated Stores’ Department a role sheleft inApril2003. ics atMacy’s Merchandising Group, Achievement Award Honoree senior vicepresident for cosmet- Shiseido andClédePeau Beauté and uniquecustomer-friendly continues to bebuildingrelevant ers. highlightof“The theworkday get into thepsyches of consum- live chatsinstores andonlineto Curtin, whosaidshedelights in still anaddiction today,” admitted that produce growth for both is Developing customer offerings profit grow was anaddiction. the [rush]of watching sales and when Iwas acategory manager, customers. “Many years ago, to thechain’s best beauty deliver meaningfulinformation Walgreens asanavenue to magazine sheco-created at shoppers, agoalof aconsumer that isconstant contact with to stay relevant.” reminds mehow important itis of vintage products beauty Consumers are evolving in Shopping centers aren’t onthe Cosmetics, Americaandas North brands withinallU.S. distribution and marketing for BobbiBrown as seniorvicepresident of sales channels. Shehasalsoserved In fact, Mangancounts the Mangan joinedwhatwas then For Curtin, theway to do Shannon Curtin — FAYE BROOKMAN Achievement Award Honoree ing into another person’s eyes to and occasionalphonecalls, look- communications are text, e-mail a world where accepted forms of literal sense—withacustomer. In toportunity get face time—inthe brilliantly, allows aretailer theop- precious asset that, ifexecuted a brick-and-mortar store isa reports to thecontrary. “Having way out, despite many market think stores were ever onthe back,” she adds, noting shedidn’t eration of megabrands. “Brick is believes those are thenext gen- pose-driven missions.” She along withbrands with “pur- models suchasBirchbox, consumer-friendly shopping rightnowbeauty are new marketplace.” solutions inthisdynamic be surprisedto findoutthatI’m a long,” shesaid. “Most peoplewould been working onitallsummer time, I’m learningto andhave surf beyond theoffice. “In my spare ognition itdeserves,” shesaid. States andgive thisjewel therec- Beauté onthemapinUnited “I would love to putClédePeau doesn’t continueto have lofty goals. career moment.” as oneteam, was another defining the plansothatwe couldexecute it then getting both groups to buyinto erated cosmetics businesses, and the merger of theMacy’s andFed- developing thestrategic planfor said. “In acompletely different way, honor andacareer highlight,” she Achiever award iscertainly an achievements. “Receivingthe Mer sixyears ago, my experience skin-care arena. IjoinedLa“When it taught herto succeedinthe of herLa Merexperience, as Award, Main isespecially proud joined inNovember 2009. founded in1965andwhichshe said Mainof thebrand thatwas our multicultural consumerbase,” understand how to engagewith ground hashelpedmeto countries. overseeing La Mer’s growth in60 given thatshe’s responsible for cultures —whichcomes inhandy, of theincreasing convergence of giving herastrong understanding father andaChinese mother, raised inAustralia withaScottish dra, was borninHongKong and Main, whoiswidelyknown asSan- Alexandra Main’s life sincebirth. of La Merglobalbrand president Multiculturalism What interests herin Her aspirations extend well That’s not to saythatMangan Rita Mangan Aside from herCEW Achiever “My diverse cultural back- role, Coyle oversees customer lion brand in2015. Inhercurrent propel L’Oréal Paris into a$2bil- of U.S. sales, Coyle hashelped nation. As seniorvicepresident experience are awinningcombi- Lorraine Coyle’s has been part hasbeenpart brand andretail Achievement Award Honoree live, choose acareer inbeauty.” make the world abetter placeto platformspose andsupports to you want acareer thathaspur- business allworth itfor Curtin. “If consumers makes thebeauty can’t replicate.” sense thatmoderntechnology say ‘thank you’ touches ahuman powerful tool inmy life.” said Mangan. “It’s beenanincredibly taught of metheart visualization,” mentors, butmy oldersister Pat path to success. “I’ve hadsomany her sister for placing heronthe her husband, Joe. Shealsocredits where shecontinuesto live with was bornandraised inNew York, of MonmouthUniversity, Mangan Cancer Society from 1999to 2002. the Dream Ballfor theAmerican Governors, andwas chairmanof chairwoman onCEW’s Board of in 2003. pleted theNew York Marathon City impressive distance.” Shecom- and Icanthrow afootball apretty basketball, ski;I’ve runmarathons strong athlete. Ilove to playtennis, Having touch points with al expansion into Asia, managing for 10years, where sheledaglob- also worked atMAC Cosmetics panded into 18new markets. Main During hertenure, thebrand ex- executing thebrand strategy. was responsible for crafting and Brown International, where she global general managerof Bobbi to joiningLa Mer, shewas the Lauder Cos. Inc. since1995. Prior it wrong.” talent around you, itishard to get you have agreat brand, andgreat areas inorder to succeed. When highly skilledintheirrespective best team around methatwas realized itwas criticalto have the brandluxury andthat’s whenI to learnhow to buildaglobal in theskin-care category. Ineeded experience runningaglobalbrand on makeup,” shesaid. “I hadno national businessandfocusing was primarilyrunningtheinter- Sandra Main A magnacumlaudegraduate Mangan hasalsoserved asvice there, shemoved to Kmart’s launchpad for hercareer. From care, haircare andhaircolor. gories, namelycosmetics, skin across thebrand’s four cate- customer marketing andsales her current role, Coyle oversees into a$2billionbrand in2015. In has helpedpropel L’Oréal Paris president of U.S. sales, Coyle Main hasbeenwiththeEstée combination. As seniorvice marketing andsalesacross A Kmart storeA Kmart served asthe retail experience are awinning the brand’s four categories, hair care andhaircolor. namely cosmetics, skincare, Lorraine Coyle’s brand and — FAYE BROOKMAN — JULIENAUGHTON Achievement Award Honoree the Estée Lauder Cos. “He is Lauder, chairmanemeritusof would dothat.” members andnot allleaders always take thebullet for histeam my mentor,” shesaid. “He will “John Demsey hasalways been in class.” the world. Herleadership isbest consumer experiences around positioning into meaningful converting La Mer’s aspirational current role in2014. “She willbe Main was promoted to her Estée Lauder Cos., when group president of the said JohnDemsey, brand globally,” equity expert inbuilding region. countries inthe for more than10 the brand’s growth industry, Coyle stressed it’s the fast paceof thebeauty on new opportunities. Despite times across four states to take By Coyle’s count, she’s moved 13 cess often comes withsacrifice. a cosmetics executive.” ence, callingher “the epitome of of L’Oréal Paris, asapivotal influ- named Karen Fondu, president who were leadingme.” She always putmy trust inthepeople path,” Coyle told WWD. “I have switching to thebrand side. she worked before inbeauty corporate headquarters, where Lorraine Coyle Another mentor isLeonard The admiration isreciprocated. “Sandra isan Coyle acknowledged thatsuc- “I didn’t take thetraditional work.” the boundaries of ourcurrent agencies to inspire usandpush brought inallourdigital-creative [-care meeting] off-site where we Just last week we hadaskin teams and learningnew things. love beingsurrounded by my our goals,” shesaid. “I absolutely er smart, agileteams to achieve fort zone andneedto pulltogeth- am challengedbeyond my com- drives her. a challenge. Infact, it’s what Vaseline andQ-tips. ress, Lever 2000, Suave, Simple, brands, includingAxe, Dove, Ca- across many of Unilever’s power and e-commerce capabilities oversees marketing anddigital at Unilever America, North skin andmarketing services ties for herself andUnilever. career bigopportuni- identifying Kathy O’Brien She hasworked onthe Dove “I amhappiest atwork whenI The executive welcomes O’Brien, vicepresident of hasspenther Achievement Award Honoree Kathy O’Brien chain-pharmacy retailers. an industry organization for sociation of ChainDrugStores, of theboard attheNationalAs- Pharmacy. at both andEckerd Kmart senior managementpositions joining L’Oréal, sheheldseveral cosmetics for eightyears. Before and nationalsales managerof L’Oréal Paris’ vicepresident she’s heldsince2008, shewas coworkers andindustry peers. personal connections” with paramount to “take timeto make Donna Ltd. Lauren, Harvey NicholsandItalia held seniorposts atPolo Ralph enough.’” and willnever accept ‘good of success. Heleadsby example and shares withyou hissecrets where hepersonally teaches was attending hissymposium, memorable experiences I’ve had his knowledge. Oneof my most constantly teaching andsharing Additionally, sheisamember Prior to hercurrent post, which about.” they love andcanbe passionate seek outandstrive for thejob be to urge women to fervently tion, O’Brien said, “My goalwill to attheawards impart recep- and Cosmetic Executive Women. of Network of Executive Women of foods intheU.S. president andgeneral manager O’Brien was Unilever’s vice said O’Brien. positively impact many more,” education to date andhopeto young peoplewithself-esteem have reached over 17million to girlsandtheirmothers. “We and resources easilyaccessible confidence-building activities which isdesigned to make its the Dove Self-Esteem Project, com/SelfEsteem, of as part recently launchedPinterest. O’Brien told thatDove WWD brand for anumberof years. Before joiningLauder, Main As for whatmessage sheaims She alsoserves ontheboards Prior to hercurrent role, — JULIENAUGHTON — MOLLY PRIOR —MOLLY PRIOR

O’Brien photograph by Jemal Countess/Getty Images; Main by Francesco Lagnese; All others courtesy

Illustrations by Kate Copeland Photograph By By point ofderivative. found thescent unmemorable to the others, while saying itwas also pleasant, and pleasantasanicespring day. But Walk onAir Spade Kate The Smell Test: Avg Score 5.6 out of 10 World" and"Perfume Legends." airy transparence — crisp transparenceairy —crisp agency Austin AdvisoryGroup. PETE BORN Author of "Fragrances of the summer, lightfloral with Ceo of storytelling sensory watching magnolia- “Derivative cookie- cutter white floral, Michael Edwards color paintdry.” as interesting as “It feelslike theendof and fruity. Butdéjàvu Paul Austin “After you’re doneadmiringthetechnique, and unmemorable.” by by vivacious inamodernway — andfreshas beingairy —even Fans it fragrancepraised ofthis GEORGE CHINSEE you don’t feeltempted tolinger. The perfume, ontheotherhand,does.” Jean-Claude Delville Senior perfumer atDrom.Senior perfumer Founder andceo of Sniffapalooza. Karen Dubin Styling by by RACHEL STICKLEY Fragrance industry analyst and Christophe Laudamiel Bois deJasmineditor. Victoria Frolova Master perfumer at DreamAir. Owner of training andevaluation Nathalie Pichard Chantal Roos agency Topnotes. Roos &Roos Co. Cocreator of on thedrydown.” note, butnotdistinctive sparkling top “Pleasant, ‘new’ fragrance would probably‘new’ notexist.” Pleasures andInnocence,without which this smelling more thanadilutionofNinetiesscents “I couldnotbelieve my nose…real hard time “A fresh, green airy and summery but and summery floral, pleasant unassuming.” critic for arabia.style.com. Biophysicist andperfume Kevin Verspoor PerfumeKev LLC. Luca Turin Founder of THIS ISABLINDTEST: Esteemed Judges other consumer. buys theproductsWWD atretail, like any an effort to findandshowcase excellence. promising scentsare picked for judgingin unattributed to encourage candor. Themost Edwards, alsomake critiques, whichare grade. The judges, ledby chairman Michael and thenumbers are computed into afinal from 1(forgettable) to 10(unforgettable) tially. Each of themgives ascore ranging vials of unidentifiedscentto judge impar- WWD.com/beauty-industry-news How would you rate thefragrance? Visit to acontrasted background.” development from thetopnotes very good structure, avery good vivacious, bright, fragrance: Itis Ilike“What foramodern a variety ofage ranges.”a variety very wearableand is by will have broad appeal fragrance “I thinkthis unfinished.” and remains central idea, that lacksa “A scent to wear.” balanced andeasy creative, butwell- Not pleasant. “Young and very Panelists are given WWD.COM to vote. to

OCTOBER 2015, No. 2 that

15 EDITED BY DIANNE M. POGODA AccessoriesAgenda Roger Vivier Nina Ricci

Alexander Junya McQueen Watanabe

Sonia Rykiel

Elie Top Valentino Paris Wrapping As collections season wound down, there was still plenty of accessories Louis Saint Laurent Vuitton sizzle around Paris. From necessities Nicholas Kirkwood like luggage, sneakers and wellies taken to new heights of chic, to smart, fresh day bags and chunky midheight heels, it felt like spring would never arrive. By ROXANNE ROBINSON and ANNE-AYMONE GHEERBRANDT

Kenzo Tabitha Simmons

Longchamp

Byredo

Giambattista Valli

Alexandre Birman

Miu Miu Chanel Stella McCartney Photographs by Stéphane Feugère, Xavier Granet, Giovanni Giannoni and Delphine Achard Giannoni and Delphine Achard Giovanni Granet, Xavier Feugère, Stéphane by Photographs

16 OCTOBER 2015, No. 2 WWD.COM WWD.COM OCTOBER 2015, No. 2 17 EDITED BY ARTHUR ZACZKIEWICZ The North Face, Reef, Lee, Wrangler and Seven MarketsBriefs For All Mankind. Markets In other corners of the market, Perry Ellis Agenda International Inc. is a vendor with a broad offering of brands that stretch from jeans and activewear (including golf apparel) to dress shirts and casu- alwear. Last week, Eric Beder, equities analyst at What is the lowest-hang- you like? Simply press the ing fruit for physical buy button and the order Wunderlich Securities Inc., reiterated a “buy” stores when it comes to goes directly to the retailer rating on the stock, and set a $35 price target. At new technologies? or brand. Anytime billions of about $21, the stock has been trading close to its It surprises many people customers can shop more 52-week low of $19.70. to learn that retailers often easily and impulsively, it is a Beder said the company is better positioned get more annual visitors big win for the retailers and than others as it “consciously pushed back the to their Web sites than brands. But to receive these shipments of fall goods to October, a month to their stores — in some order transmissions, retail- cases, four times as many. ers and brands will need to later than last year, to offer a deeper ‘wear- Unfortunately, less than allocate more technology now’ focus.” Beder said he also believes the 3 percent of these online resources to clean up and “warmer weather has not materially impacted visitors typically convert standardize their own data the company.” into customers. as they integrate into each For the remaining few retailers that reported Many retailers spend lots of these sites. And if history September same-store sales last week, results of time and resources to get is any guide, the algorithms were mostly weak and many blamed the warm an extra fraction of a per- of these giants will begin to favor the “buyable” prod- weather. L Brands Inc. was one bright spot and cent to convert online, while very few try to also drive the ucts. I believe this transition its Victoria’s Secret unit posted a 9 percent same- 97 percent who have not will take hold within two store sales gain — further evidence of strength in converted on the Web into to three years because the intimates segment. their physical stores. In fact, retailers that chose not to But the rise in denim, intimates and activewear when it comes to promoting participate will likely see has not buoyed all companies in the space. Ear- their physical stores online, their traffic wane. lier this year, Frederick’s of Hollywood filed for most Web sites simply list bankruptcy, and more recently, Quiksilver Inc. Ken Seiff stores’ addresses, hours What is the last frontier of operation and phone of the retail landscape to and American Apparel have both faltered and numbers. And, as a result, get technology? filed Chapter 11. Beanstalk’s they miss a big opportunity Retail and brand back Investors are likely eyeing these moves closely to build out the presence offices will be the last to gauge where the market is heading, and who of the store section of their frontier to acquire the can increase market share. Macroeconomic issues Ken Seiff Talks Web site. necessary technology and are also in their sights. Offering their online systems innovation. Histor- Last week, the Federal Reserve Open Markets E-commerce audiences the services and ically, with the exception of features designed for store the finance department, Committee released its minutes from Septem- OBeanstalk Ventures is a uncommon for 997 to leave customers, such as booking retailers have underin- ber, which revealed its concern over a slowing New York-based seed-stage without making a purchase. in-store personal shopping vested in the back office. global economy and volatility in the stock mar- venture fund exclusively So, as a meaningful share appointments or RSVP-ing This is a bit backward since ket. The Fed said it was weighing the “material focused on investments in of online traffic shifts from to in-store events, will drive these teams often oversee slowdown in economic growth in China and “impactful and innovative higher-converting desktop meaningful results. Custom- critical functions. One area potential adverse spillovers to other econo- technology” in the retail Web sites to this far low- ers who use the Web site in which we have taken a mies.” Inflations, employment and wages were sector. er-converting alternative, to book personal shopper keen investing interest is also examined, which led the Fed to hold off on The company was the blended conversion appointments spend 300- in the buying and selling of founded as a partnership rates inevitably decline. For plus percent more than the excess inventory. an interest-rate hike. For now, though, holiday between Ken Seiff and several years now, retailers average store customer. By It is not uncommon for Stock Charmer sales and the employment outlook will be key Novel TMT, which is the have been advised that their taking these two relatively a large off-price retailer to factors for Wall Street and investors in the retail global technology invest- responsive-design Web simple actions on their sites, be a brand’s single largest Investors eye apparel, an astonishing 14 companies have had increases peaks? Analysts are concerned that sluggish sales apparel sector. ment firm of Silas Chou and sites effectively serve their retailers can easily expand customer. These multimil- but will the market bite of more than 30 percent. in September — partly due to warmer weather that his family. Seiff serves as mobile visitors, but they the audience of potential lion-dollar transactions, The top three gainers include Yoox.com with delayed fall merchandise spending as well as the So, for the foreseeable managing director. Prior to have been copying their in-store guests and add which can impact a brand’s a 69 percent increase, Coty Inc., up 68 percent, impact of Hurricane Joaquin — will make quarterly this role, Seiff was founder e-commerce strategies to new-to-file customers that annual profits, are still back? otherwise would have been happening on excel spread- and Pandora A/S with a 62 percent rise. The results a washout for many companies. But a few of Bluefly and cofounder mobile. This doesn’t work future, the financial markets of Poppin as well as Simply because mobile site pages lost in the nameless hoard sheets, without photos. That By ARTHUR ZACZKIEWICZ bulk of gainers are key players in activewear still see opportunities in the market. will be filled with the Gum. Here, Seiff discusses load in 6 to 8 seconds and of that 97 percent who is crazy. For a thousand-dol- and intimates, and include: G-III Apparel Group Analysts at Telsey Advisory Group said in an out- e-commerce, online con- filling out the checkout fields disappear back into the lar full-price transaction, Ltd., up 59 percent; Under Armour Inc., up 55 look report that “with denim, intimate apparel and one thing investors hate: sumer behavior and new is painful. Internet ether. the same brands can easily elieve it or not, it’s actually a percent; L Brands Inc. and Nike Inc., each up 43 activewear performing, there is investor interest technologies. We are leading the justify deploying sophisti- good time to invest in retail percent, and Lululemon Athletica Inc., with a 32 in apparel, particularly in PVH Corp.” uncertainty. way with a solution that What is the next big cated, visual solutions. It is and apparel stocks. At least percent gain. PVH, which is down 12 percent for the 12 months Conversion rates are integrates Apple Pay and thing in online commerce? not just the brands that are Google, Facebook, Insta- losing out, it hurts the off- certain ones — and for now. That’s the good news. The bad news is that to $101, posted strong quarterly results at the end declining for online traffic. Google Wallet into a native What does this mean app experience. In this solu- gram, Pinterest and Twitter price buyers as well, since Retail industry sources major storm clouds have been forming since of August, which beat expectations and triggered NRF chief economist Jack Kleinhenz said the for online sales and how tion, site pages load in 1/20th are in the early stages each brand’s spreadsheet say an uptick in sales of August. That’s when concerns over China’s econ- higher sales and earnings guidance for the full- market remains challenging and highly compet- should brands and retail- of the time and no forms of reinventing the way is different. So smart certain apparel segments is omy, as well as weakness in emerging markets, year period. itive. He told WWD last week that with deflation ers respond? are required at checkout. consumers will shop online. retailers like TJ Maxx, Ross attracting investors — espe- forced global investors to shift their equity invest- The Telsey analysts said, “even with what is running at about 2 percent, “there’s no pricing Let me start by pointing We expect this powerful They are redesigning their and Gilt have to cut and cially institutional ones — ments from Asia to Europe while building up cash expected to be a very choppy sales environment power” for retailers. Kleinhenz also said the out that today’s consumers combination to drive mobile experiences so consumers paste these offers manually who are comfortable with the cyclical nature of holdings, according to recent monthly surveys of in [the third quarter], key focal areas” for investors “underpinning for growth is more jobs. If you are increasingly looking checkouts up [significantly] will be able to “buy” prod- into formats they can then fashion apparel retailing. As a result, share prices fund managers conducted by Bank of America to consider include strength in orders from depart- get more jobs, you get more spending power, but to shop on their mobile and stem the industry’s ucts from retailers without analyze. This complicated B phones, but the experience recent decline in conversion ever having to leave the problem, along with many of companies in the activewear, intimate apparel Merrill Lynch. ment stores, higher average unit costs — and higher job growth in the first nine months has been on is falling short of what they rates. More importantly, it will Web sites and apps of these other back-office functions, and denim markets are soaring. Looking ahead, investors in the U.S. are margins — and the possibility of acquisitions in the average lower than 2014. We are creating jobs, but have come to expect. For enable retailers and brands social media giants. This is a will be overcome by the The inflow of investors has helped the WWD keeping close tabs on consumer spending. The apparel vendor side of the business.” The analysts not as many as 2014.” every 1,000 visitors to a to satisfy today’s consumer big win for consumers. See next generation of software Global Stock Tracker outperform major indices National Retail Federation’s forecast for the said “many of the large apparel conglomerates Ozlem Yaylaci and Sara Johnson, economists retailer’s mobile site, it is not mobile shopping needs. a pin or tweet of a product companies. and market sectors. For the 12-month period, the holiday shopping season included cautionary have the balance sheet and expertise to make an at IHS Global Insight, said if the “job numbers for

tracker is up 10.4 percent, which compares with a statements about a challenging environment. acquisition that would be complementary to their October and November are strong, we still see a ONLINE LUXURY GROWTH 7.7 percent gain for the S&P 500 and a 4.7 percent In its holiday outlook, PricewaterhouseCoopers existing portfolios.” December rate hike as the most likely scenario; Top three fastest- gain for the Dow Jones Industrial Average. said consumers will spend, but Millennials in Some of the bigger vendors include VF Corp., however, more bad news from the job front can Of the 100 companies in the WWD tracker, 57 particular will dole out money on entertainment which said in its most recent quarterly report that delay the hikes to 2016.” growing luxury have advanced in the 12-month period while 43 and travel instead of apparel. Wage stagnation is strong sales in its outdoor and action sports unit as So, for the foreseeable future, the financial Web sites have declined. Of the stock gainers in that period, also a worry, as well as employment conditions. well as its jeanswear business pushed sales up 10 markets will be filled with the one thing investors OAccording to brand and year- 37 have posted gains of more than 10 percent. And So have retail and apparel stocks reached their percent. The company’s stable of brands includes hate: uncertainty. ■ over-year percentage growth. 327% 298% 228%

18 OCTOBER 2015, No. 2 WWD.COM Illustration by KYLE PLATTS WWD.COM OCTOBER 2015, No. 2 19 EDITED BY EVAN CLARK eiman Marcus’ sec- RetailBriefs ond initial public “You can’t do it in a public Retail offering ran right arena — and can’t do it with Agenda into the maw of a stock crash and the spotlight of disclosure is now a ques- and scrutiny,” tion mark. Vince FARE THEE WELL they’re saying it, but what is bombing under Kenneth Cole, Kenneth Cole Productions Executive Shifts they’re saying: goodbye the public market (at least to their current klieg lights. J. Crew OThe c-suite is deep roles). The future course into a season of change. of retail might well is stuck turning threat to stores while redefining the relationship And whether executives depend on how the next around as a private player. Belk skipped an IPO between brand and consumer. are moving on after an crop of business and for an immediate buyout by Sycamore Partners. That might be the sweet spot for some e-com- acquisition, passing the design leaders meet the NAnd even Michael Kors — the fashion-financial merce companies posting big growth numbers, reins to a key lieutenant host of forces changing golden child — is losing altitude (and market but it adds up to big trouble for many companies. or putting a positive spin retail, from e-commerce capitalization). Kenneth Cole Productions, which spent 18 of on a gig that didn’t work to full price resistance to Wall Street is no longer the promised land for its 32 years as a public company, stepped back out, it’s not so much how fast fashion. fashion — at least for now. from Wall Street in 2012 and has since closed The reason? Uncertainty. Two kinds. underperforming stores and pulled the plug “This was a natural time for Fashion brings its own kind of craziness to on the wholesale side of its women’s sports- the stock market equation, a seasonal rise and wear collection. Founder, executive chairman this transition. October 2015 fall based on style trends that tend to flummox and chief creative officer Kenneth Cole said he is my 10th anniversary as investors looking for steady returns. Companies needed to make some serious changes to revi- also don’t know what they’re jumping into with talize the company. ceo. It’s a big time for me, turbulent markets and the economy, which “You can’t do it in a public arena — and can’t do and you know the business is makes it very hard to price an offering or get the it with the spotlight of disclosure and scrutiny,” value that their backers want. Cole said. “[We] needed to become a nonpublic in good shape.” “What you’re seeing in retail, it is an incredibly company.” Kay Krill, outgoing ceo, of Ascena Retail Group’s tough macro-environment that continues to get The public offering certainly has its benefits: Ann Inc. tougher,” said David Shiffman, managing director IPOs boost a company’s profile, raise money to and cohead of the global retail group at Peter J. fuel expansion or pay out existing shareholders “I look forward to continuing Solomon Co. “People are complaining about the and create a new currency — stock — to pay exec- U.S. economy, it may be slower growth, but it’s utives who make acquisitions. But a stock market to work with the TJX showing more stability than Europe and Asia. You listing can also bring with it many headaches, have a lot of things going on.” from costly legal fees and regulatory disclosures leadership team in the role That’s a change from what has been the general to the Securities and Exchange Commission to of executive chairman as we trend since the market picked itself up after get- intense scrutiny from shareholders. ting knocked down in the financial crisis. When things go right and investors scramble keep growing TJX as a global, “Since April of ’09, the market has gone to get a piece of a hot property, the gains can value retailer.” one way until two months ago — straight up,” outweigh the headaches. Shiffman said. “Steady, predictable growth. Michael Kors Holdings went public in late Carol Meyrowitz, outgoing ceo, The TJX Cos. Inc. That’s what wins the race. That’s what gets the 2011 and its stock soared from $25 to more than high valuation. Most of these companies that $101 in just over three years — making plenty of “I’m really looking forward went public were growing rapidly. You had people rich and buying out early investors Silas high growth in the economy and a huge lift out Chou and Lawrence Stroll. Kors was the offering to stepping into my new of China. That’s what a lot of these companies that launched a thousand dreams. Designers role as creative adviser rode on. Consumer spending drives retail of all stripes said, if only to themselves, that if performance.” his business was worth all those billions, then at Banana Republic. This When coming to market, companies are mea- they were worth some fraction — or multiple opens the door for even sured against where similar firms are trading, — of that. so when a sector suffers, so do the chances of more possibilities for my a getting a high valuation. Michael Kors stock is hose dreams are now fading. Some own collection and Banana down about 42 percent this year, while shares of will no doubt stage IPOs in the Ralph Lauren Corp. hit a 52-week low last week future, but it will be the best and the Republic.” before spiking on news that founder Ralph Lau- brightest. ren would cede the chief executive officer’s title Marc Jacobs might go to market. Marissa Webb, outgoing executive vice president and creative director of Banana Republic. to Stefan Larsson. THe has the brand and the backing of Bernard “Going forward, IPOs are probably going to Arnault and has been moving toward an offering Is the IPO hang out for a bit, just because of the uncertainty that would still raise some interest in the market, in the market,” predicted Jonathan Eyl, senior depending on when it hits. ‘TIS THE SEASON specialist of corporate solutions at Nasdaq. But any company mulling an IPO has to ask NPD’s Holiday Take “We’re not seeing that many IPOs in the market itself the question that when a blue-chip luxury The NPD Group found that consumers are going into overall. Once you see IPOs fall in the face of the retailer like Neiman Marcus finds itself waiting in the holiday season with a more positive outlook. Out of Fashion? planet, that’s not good for others [considering limbo, what should they do? an offering].” Neiman’s, which is owned by Ares Manage- 2015 The IPO also seems to be less appealing for ment and the Canadian Pension Plan Investment $619 2014 The splashy public stock offering many companies, which are finding interest Board, filed to go public again in early August, Plan to spend more from private equity investors wanting to buy into just days before China moved to devalue the Amount consumers 15% isn’t the brass ring it was just a few years ago. smaller, promising brands and concepts. yuan, sparking a world of handwringing. plan to spend 12% By EVAN CLARK So far this year, fashion brands, retailers and “They interviewed all the banks [to handle the on holiday shopping beauty companies have logged more than $15 IPO] as the world started to fall apart in August Plan to billion in M&A (including both completed and and then started to step back and say, ‘We’ve got 5% spend less announced transactions) and no successfully to watch the market a little more closely and then increase from 16% last year completed IPOs, according to Dealogic’s tally. we’ve got to decide,’” said one financial source, 20% Then there is the business of selling apparel in who requested anonymity. the midst of a crush of evolutionary forces: Mall If Neiman’s is waiting, they’re at the front Almost two-thirds of consumers will traffic is waning; fast fashion is scooping up more of the line and they could be there for a good research goods before they buy, market share, and digital is posing an existential long while. ■ highlighting the importance of the Web.

20 OCTOBER 2015, No. 2 WWD.COM Illustration by RANDY MORA illustration by CARLOS MONTEIRO ActivewearInFocus As activewear has become a hot category for fashion and performance in recent years, more brands have sprung up with strategies to distance themselves from the increasingly dense pack. Here are a few to keep an eye on. By RACHEL STRUGATZ

Outdoor LAUNCHED RETAIL PRICES SIGNATURE NEWS 1 Color-blocked leggings The brand just raised $7 million in a Series A round of Voices 2013 $50 to and crop tops in tonal funding, led by General Catalyst with participation from collections of gray, navy Forerunner Ventures, Collaborative Fund and 14W. SOLD AT $100 and beige. Cofounders Tyler Haney and Andrew Parietti, who have Outdoorvoices.com with four-piece kits raised $9.5 million to date, will open a pop-up shop in NoLIta retailing for $295. in New York in November.

Heroine Sport 2

LAUNCHED 2014 ONES TO 1 WATCH SIGNATURE Geometric lines that form a sleek silhouette.

RETAIL PRICES $90- $175

SOLD AT Heroinesport.com, Berg- dorf Goodman, Saks Fifth Avenue, Shopbop and Bandier.

QUOTE “Health and fitness is such an integral part of our daily lives that we 2 should express our style in the gym as much as one would on the street,” said chief executive officer Nima Taherzadeh. “We work hard to stay fit and healthy, and we shouldn’t shy away from showing it off.”

22 OCTOBER 2015, No. 2 WWD.COM Photographs by CLAIRE BENOIST Prop stylist GINA MARIE BARBARO InFocus Mara Hoffman Activewear 1

LAUNCHED RETAIL PRICES QUOTE “Innately, the category 2015 $97-$258 endorses strength, wellness and positivity SIGNATURE SOLD AT through active and healthy Vibrantly printed spandex marahoffman.com, living, which is something and French terry jump- Shopbop, Bloomingdale’s, I strive to encourage suits, ponchos and cutout Bandier through the voice and sports bras and tanks. work we put out into the world every day,” said 1 designer Mara Hoffman.

2

ONES TO WATCH

Lucas Hugh 2

LAUNCHED QUOTE “I don’t view it as 2010 activewear — I see it as ready-to-wear with a SIGNATURE technical performance,” Leggings, all with built-in said Anjhe Mules, founder support on the waist and and creative director. “We bottom, internal pockets approach the design pro- and heat-sealed seams. cess as a designer fashion brand would, with fashion collections. I am not a fan RETAIL PRICES of the print frenzy that has $220- boomed with mainstream $400 activewear.”

SOLD AT Neiman Marcus, Bergdorf Goodman, Net-a-porter. com and Bandier.

24 OCTOBER 2015, No. 2 WWD.COM InFocus

Zara Terez 2

LAUNCHED 2008

SIGNATURE Photorealism, Made in New York leggings with graphic prints.

RETAIL PRICES $52-$85

SOLD AT Saks, Bloomingdale’s, SS16 Tennis/ Golf/ Activewear Shopbop, Carbon38, Band- ier and zaraterez.com

QUOTE/INSPIRATION 2 “Activewear has allowed for prints and colors that were once considered 1 faux pas to become the most sought-after trend in the women’s contem- porary market,” said Zara Zimmerman Tisch, founder and chief execu- tive officer.

ONES TO WATCH No Ka’Oi 1

LAUNCHED 2014

SIGNATURE Concept stitching, exclu- sive prints and hand-em- broidered embellishments.

RETAIL PRICES $130- $750

SOLD AT Net-a-porter, Matches Fashion, Yoox, Harvey Nichols, Excelsior Milano, Luisa Via Roma

QUOTE PLAY ALL DAY “In our spring collection, I found inspiration in Futurism, a 20th-century Italian artistic and social movement,” said Simona Finelli, art director of No Ka’Oi. “Futurism focused on dynamism, speed and technology. It explored the Corporate Offices & NYC Showroom way the world was quickly changing.” 17 East 67th Street, Suite 3D New York, NY 10065 Email: [email protected] www.letoilesport.com

26 OCTOBER 2015, No. 2 WWD.COM InFocus

CLOCKWISE FROM LEFT L.L. Bean’s Traverse down shirt with TLF’s Infi-Dry hoodie, Snow Peak’s Insect mesh hoodie, Free2B’s B Cozy hoodie and The Upside’s camo yoga pants.

Get Moving

While activewear has been a robust market for a while, fashion brands are moving into the turf to add good looks to performance. By ROSEMARY FEITELBERG

28 OCTOBER 2015, No. 2 WWD.COM Photographs by CLAIRE BENOIST Prop stylist GINA MARIE BARBARO The North Face’s Summit Series mountaineering collection.

InFocus difficult to find fashionable, leggings-as-sportswear more than any other brand. the influence of more fashion-oriented activewear. at myself at the start of a functional suits. Lucas Given all that interest, it’s no surprise more Icebreaker’s international merchandising manager race one day and became Hugh’s black-and-white bothered by the fact that traditional brands are also trying to step up their Sveti Enlow said, “Things you would never have tri-suit costs $380 and has I was racing in a men’s fashion game, with Columbia Sportswear and REI seen two years ago, these crazy, printed leggings, a padded cycle seat and a black tri-suit,” said Andrea hosting West Chelsea events in New York this week. are what women are wearing hiking. It’s not that built-in sports bra. Robertson, who founded Mules said the tri-suit The $2.2 billion Seattle-based REI spotlighted its brown, granola look anymore.” Triflare, a triathlon sports- has sold well and Net-a- REI brands, REI Co-Op and evrgrn collections Oct. Free Country’s chief executive officer Ira wear brand, in 2012. porter reordered it within 13 on The High Line, with hard-to-miss photos shot Schwartz expects its Free2B activewear to fuel The St. Louis-based its first six weeks of sale. on trips organized by REI Adventures. $25 million in sales this year through retailers like brand’s bright tri-suits, tri- Lucas Hugh is also sold tops and shorts retail from Nike has been known to offer select fashion edi- Academy Sports, J.C. Penney and Sports Authority. at Shopbop, Intermix and $79 to $199. tors concierge services for training and gear when Salem, Mass.-based Avalanche, a $45 million Bergdorf Goodman. In July, innerwear brand traveling to Milan, Paris, New York or London outdoor-inspired apparel brand, has opened a She said: “I do believe Cosabella launched collections. Asics is ramping up its apparel with New York showroom at 525 Seventh Avenue, partly there is a trend to create Triathlon, its first collection fashionable activewear at its FujiTrail line, in stores at the end of January. to expand its nine-month-old licensing business. of activewear that also the moment, but to create ABT prima ballerina Misty Copeland, who tells There are plans to open 20 stores through partners NICHE functions as swimwear. functional performance her story in Under Armour ads, is reportedly help- in the next two years, said Ron Petrucci, president MARKET The assortment, which wear is a whole new chal- ing drive the brand’s women’s business. and ceo of parent company Red Rock Trading Co. Triflare includes a tri-suit, sports lenge.”— ARIA HUGHES Counter to what used to be the industry’s Meanwhile others are delving into technology. bras along with matching “shrink-it and pink-it” approach to women’s, The recently introduced Vimmia X uses smart shorts and tops, retails increase since 2000. Reebok’s new UFC-endorsed apparel deal is all yarns to help regulate the wearer’s body tem- from $59 to $133.50. Guido Professional triathletes Campello, Cosabella’s about training. Despite UFC champion Ronda perature and compression fabrics for circulation. like Mirinda Carfrae and chief executive officer, Rousey’s fame, some questioned how the workout More enterprising is Brooklyn-based Wearable Targeting Gwen Jorgensen are said the line is gaining TEXTILE gear would take with women. Nearly 45 percent Experiments, which has designed avant-garde bringing awareness to momentum and will TECH of Reebok’s apparel sales are driven by women’s products for brands like Oakley, Reebok and Fox Female the sport and landing expand with new colors. Invista’s Cooling Tech- ¬ Noble Biomaterials bacteria. Silverclean also ¬ and the aim is to be around 55 percent by 2020, Sports, and is now developing technologically sponsorships with brands Betty Designs, which helps products stay clean More nology by Lycra Beauty recently received Bluesign Triathletes including New Balance, is known for its tattoo-in- and odor-free between said head of brand strategy Amy Klaris. advanced activewear under its own label. The consists of nylon fibers Product Line Approval For the growing cadre of Tyr, Oakley and Asics, but spired pieces, and Soas, washes, promoting water Tory Burch is so committed to her Tory Sport company developed customized software for its Than a that are engineered so for its XT2 anti-odor female triathletes, fashion companies such as Nike, a San Diego-based conservation. collection that she will open a Fifth Avenue store Netherlands fan jersey that mimics the emotions Stretch moisture moves to the fab- technology that employs is becoming as important Reebok and Adidas have label that produces ric’s outer surface, where it a proprietary process to for it in March. And Bandier will open boutiques in and actions of the Netherlands Rugby Sevens in as function. yet to invest heavily in the color-blocked gear, are Unifi Inc. has enhanced evaporates quickly. Among provide permanent anti- ¬ Manhasset, N.Y., and Dallas in the next two weeks, real time. Now being sold in the Hague’s Store of According to the USA category. Instead, smaller also putting their design Athletes and those who usage of its Sorbtek fiber the benefits of nylon using odor protection that does and three more in the Tristate area next year. The the Future, the shirt gives wearers a sense for the Triathlon, the official gov- brands are entering the stamps on the market. want to look like them are that provides permanent Cooling Technology are not wash off or wear out. company will also relocate its Manhattan store to physical impact, heart rate, exhaustion and adren- erning body of American space, catering to these Anjhe Mules, founder demanding more than a moisture management its permanence, shaping XT2 fibers can be dyed, triathlon activities, 37 athletes with fashion-for- and creative director of little flex from their perfor- through a proprietary a 3,000-square-foot space at 164 Fifth Avenue that aline being experienced on the field. Whitehouse and quick-drying, improved offering brands design percent of its 477,794 ward options — something U.K.-based active brand mance fabrics — and the “Catch, Move, Release” will have an 1,800-square-foot studio for fitness said, “Until now sensorized clothing has zeroed comfort and easier gar- flexibility. members are female women have not had in Lucas Hugh, launched a Cosabella textile industry has taken technology that absorbs classes. Derek Lam has linked up with Athleta, in on elite athletes, and in doing so has “kind of ment care. (about 177,000), which abundance. tri-suit for this fall after notice. moisture, moves it away ¬ The antimicrobial and even Old Navy has been flagging the category forgotten about everyone else.” ■ reflects a 27 percent “I literally looked down her customers said it was A recent survey by ¬ The North Face’s sector has been gaining in from the skin and releases in its windows and on its homepage. Kate Spade The NPD Group showed Summit Series moun- importance. Dow Chem- it for quick evaporation. New York and Beyond Yoga are teaming on an consumers are interested taineering collection now ical Co. has increased It is incorporated into the ath-leisure line as well, in January. in more established has the most breathable marketing of its Silvadur staple fiber, making its Last month, high-end tennis and golf line L’Etoile fabric technologies in waterproof membrane — fabric additive that inhibits moisture-management activewear, such as stain DryVent — the brand has microbial growth and the properties permanent. launched activewear and expects sales to rise by resistance and water- ever made. The collection, buildup of microbes on Sorbtek yarns also have about 50 percent, said founder Yesim Philip. “While proofing. There’s also a bowing this week, also fabric surfaces that can inherent soil release prop- one can argue that there seems to be a saturation of growing desire for newer includes the brand’s most damage the material. erties to protect against contemporary sportswear, there is a definite cache advancements in “smart advanced FuseForm New sportswear brand everyday soils, such as for activewear that transcends the court and could fabrics” with cooling and jacket, enabling more Silversport, like Silvadur, sweat and grass, as well feasibly be worn throughout the day. I wanted to warming characteristics, incorporates natural as being wrinkle-resistant. seamlessly engineered be able to offer our customers the ability to ‘play as well as moisture-wick- zones. silver, which has an estab- — ARTHUR FRIEDMAN ing and UV protection. lished association with all day’ without compromising style, so the move Here are five of the eliminating odor-causing toward activewear came naturally,” she said. latest innovations. Japanese heritage brand Snow Peak is making inroads beyond REI and now sells to Barneys New York and Steven Alan. Snow Peak founder Yukio Yamai’s granddaughter Lisa designs the collection n average, Americans 12 months ended August 2015, from $35.1 billion in three sectors: Camp, Dwell and Transit. There spend 93 percent of in the same period a year ago, according to NPD are plans to open a few stores in the next few years, their time indoors, but Group’s Consumer Tracking Service. U.S. dollar with New York a priority, according to e-commerce an increasing number sales of women’s activewear apparel increased manager Russell Borne. “There’s this whole resur- of them prefer to dress 21 percent to $19 billion in the 12 months ended gence in the outdoors. It’s a lot more accessible to as if they don’t. August 2015, up from $15.7 billion in the prior year. everyone, and it’s not about this huge expedition Whether that EPA stat Tory Burch and Derek Lam are two recent to climb a mountain. Now it’s like, ‘Let’s go play in is tied to the surge in the designers to jump into the fray, perhaps inspired the park and Instagram it,’” he said. nation’s urban popula- by the success Stella McCartney has seen with her Celebrities, who are often photographed by tion, the ever-increasing work week or the tethers Adidas deal and Yohji Yamamoto has with Y-3. paparazzi pre- or post-workout, are also getting in Oof technology, is best left to socio-economists. But That momentum is only being propelled by the on the action. Kate Hudson is expected for Friday’s more than 54 percent of Americans live in urban strength of the boutique fitness trend, thanks to grand opening of her Fabletics store at Bridgewa- areas and that figure should rise to 66 percent by SoulCycle, The Movement, Flywheel, Model FIT, ter Commons in New Jersey. And Jessica Simpson 2050, according to the U.N. FlyBarre, AKT, Peloton, Tone House, Pure Barre, is expanding her mainstream apparel empire with Furthering the quest for chlorophyll is this Swerve, Barry’s Bootcamp, Ballet Beautiful and an activewear collection this fall. New Balance year’s U.S. National Parks’ “Find Your Park” cam- Chaise 23, among others. And while some of these flags its HKNB collaboration with Heidi Klum “as a paign, which encourages Millennials to explore have gotten into the apparel game, more estab- collision of sport plus fashion.” And as a follow-up the great outdoors. And some speculate that the lished ones are making moves, as well. Equinox, to its Selena Gomez-supported Neo label, Adidas popular music-festival circuit is prompting some a 76-unit fitness club, is amping up its fashion launched the teen-friendly adigirl label. Taylor to dress more outdoorsy — and even camp out. offerings with new labels and trunk shows in its Swift opted for activewear for some of her current Whatever the impetus, designers, activewear own pro shops. E-tailers like Bandier, Carbon 38, “1989 World Tour” appearances, and she had the brands and outdoor apparel labels can attest that Vimmia and Net-a-sporter have added athletic-ori- World Cup winning women’s soccer team join her women are more than ever all about the outdoor ented assortments. Plagued as it has been in recent on stage at the Meadowlands this summer. sportif life. U.S. dollar sales of overall activewear months with a glut of inventory and sinking sales, Not to be left behind, authentic outdoor com- apparel increased 17 percent to $41 billion in the Lululemon probably helped to advance the idea of panies like Icebreaker are keeping a closer eye on

30 OCTOBER 2015, No. 2 WWD.COM WWD.COM OCTOBER 2015, No. 2 31 EDITED BY JEAN E. PALMIERI AND ALEX BADIA women’s wear. If we do, we will crash and burn. That’s why we never wanted to go too skinny. If you go too extreme, you lose the guy.” Agenda Abboud should know. While he has his own higher-end, more fashion-forward line, he also is creative director of The Men’s Wearhouse, which appeals to the male masses with more than 1,700 stores in North America. While it took a while for the retailer to go skinnier, slim-fit suits now represent 45 percent of the company’s business. “We have to move the needle gently,” Abboud continued. “We won’t be going to bigger, baggier clothes immediately.” That said, Abboud did tweak his collection slightly for spring by broadening the shoulder, suppressing the coat and offering a subtle flare The move from slim from the hips out. “In a way it’s like an hourglass,” he said. “The dimensions are slightly different, but to slouchy suits has o slouchy or stay skinny? nothing drastic.” That is the sartorial philosophical question now That temple of preppy-dom Brooks Brothers, created a conundrum facing men — not to mention brands and retailers which hired Browne to design an updated collec- G— as a looser silhouette is beginning to percolate tion called Black Fleece in 2007, is holding off from for retailers. among some European and American designers. going slouchier, as well. After more than a decade of shrunken silhouettes, “In men’s wear, it takes a period of time for By JEAN E. PALMIERI pioneered by the likes of Hedi Slimane in Europe trends to evolve,” said Lou Amendola, chief mer- and Thom Browne in New York and taken to the chandising officer. “We saw the influence of slim

Shape Shiftersmasses by J. Crew and its Ludlow model, the suits in 2006 with Thom Browne and now it’s 50 pendulum is beginning to swing — or at least inch percent of our business. We need change because — the other way. then consumers will update their wardrobes, but At the recently completed spring men’s shows, it’s a slower evolution. It’s not going to become 50 Winners designers including Giorgio Armani, Gucci, Haider percent of the business overnight.” Ackermann and even the U.S.’s quintessential Even so, Amendola said Brooks may introduce and Losers Southern gentleman Billy Reid showed volumi- a slouchier jacket, “but we won’t throw the other nous blazers and baggy pleated pants that harked things out. We’ll probably test something in the A simple shift in silhouette back to the power suits of the Eighties and Nineties winter of next year or even spring-summer 2017.” can be a game-changer for rather than the rockers or preppies of the Fifties. He said jacket silhouettes in 2016 will start many. Here, some obvious But is the world of men’s wear — where stylistic moving toward more deconstructed shoulders and (and not so obvious) winners shifts take place at a glacial pace and customers chest pieces, creating a little bit more slouchy of a evolve slower than Australopithecus — ready to silhouette, “but it’s not a big, baggy suit,” he said. and losers from the loosening adapt to a new shape? Some don’t think so. After all, we’re talking about men’s wear, where up in men’s wear. “This is dangerous,” bristled Joseph Abboud. a large portion of the population is probably still “We can’t play with men’s wear like we play with wearing slouchy suits anyway — having never ►

Winners:

Fabric-makers: Socks: After Shoulder pads: Complex carbs: Underwear iTunes: Down- Chunky knits: Cuff links: The Youth (always): The baggier years of cropped Nothing goes After a decade brands: Break load fees for The ultimate cozy wider sleeve While middle the suit, the pant styles show- better with a of no carbs after out the boxers, “American Gig- layer is back on allows for a aged and older more yardage ing off men’s slouchy suit than 2 p.m., guys can boys. It’s time to olo” will increase the styling menu. French cuff shirt men have been needed — and bare ankles, the strong shoulders return to munch- give perfor- so Millennials can Pile them up. and the overall there, done once pleats are return of the — but let’s not ing pretzels, mance under- watch Richard sensibility wel- that with the involved, the dress sock is one return to the potato chips wear — not to Gere rock the comes trappings slouchy suit, the amount doubles. of the major vic- days of “Dallas” and bread. (But mention thongs original Armani such as cuff links. silhouette is the tories. Put those and “Dynasty” stay away from and going com- slouchy suit. But stay away newest thing half-socks away just yet. refined sugars at mando — a break. from the exces- going for the and wear proper all times: swim- Your anatomy sive Nineties under-30-year-old. calf-length socks suit season isn’t will thank you bling-bling. but, please, no that far away.) and, who knows, more bright polka maybe your voice dots. will even get deeper again. Photographs courtesy of Shutterstock of courtesy Photographs

32 OCTOBER 2015, No. 2 WWD.COM Photograph by GIOVANNI GIANNONI WWD.COM OCTOBER 2015, No. 2 33 34

OCTOBER 2015, No. 2 Agenda silhouette? more forgiving — withthenew, formance briefs suck itupinper- stretch wool —or squeeze into Who needsto Lycra fabrics: more our for a pleatedfront For example, we are already doingtrousers with to interpret thesetrends inavery subtleway. for real fashion followers. For us,it’s important acknowledged more itis thetrend,geared “but more modern,slimmer silhouette.” premium, we’re stillseeingamazingsuccessina of ourmarket probably position,which is midto line comingthrough, now butright Ithinkinterms at avery highlevel, we have noticedaslightly fuller as “slimmer andmore tailored. There’s nodoubt clean,very modern”a “very which fit, hedefined stillseeking customeris saidhis inLondon, Lewis about tochuck theskinny fortheslouchy. butourcustomerwantstolookelegant.” pictures, said. “That’s adesigntrend anditlooksgood in thebestseller.pants is “Noonewants baggy,” he company’s solidnavy modelwithshorter, tighter he’llwear itforever.”a suitfit, office andnotlooklike clowns. Onceamanlikes “We’re doingclothesforpeopletowear tothe stagebetween fashion andstreet fashion,” hesaid. Daniel Cremieux, agreed. “There’s adifference onto Wall Street wearing sloppy suits.” It’sthe assortment. anitem—butmenwon’t walk willbe6percentIf anything, softconstruction of are more andtheAmericans conservative.stylish TheEuropeans point. are atthis moredo baggy now getting intoslim suits, “so I’mnotgoing to I’lljustgetsuits. “Then more business,”hesaid. showing competitorsstart slouchyhe hopeshis try’s leadingtailored clothing-maker, joked that burger, president ofPeerless Clothing,thecoun- skinny andare staying thatway. Ronny Wurtz- and fresh,” hesaid.“More relaxed andfriendly.” longer, oversize trenchcoat. that were “softer andalittlemore slouchy” anda with drawstring pantsalongwithpleated for spring showed modelpaired aless-constructed headofmen’sFrank Muytjens, designforJ. Crew, of theoverall offering“and seehow itgoes.” modelthatwillbearound 5to10percentgle-pleat For fall2016, theretailer willintroduce asin- for 40percent eightyears ago,” Amendolasaid. 80 percent were ofthebusiness,but“we pushing just aboutsuits.Plain-front pantsnow represent versions theirNineties cleaned outoftheirclosets. Murray headdesignerforSuitsupply, Coetzee, Nick Keyte, head ofmen’s wear buying for John Nor are European orFar consumers Eastern The Cremieux slim andthe suitofferingis Stephane Cremieux, chiefexecutive officerof Wurtzburger saidintheU.S., menare just There are thosebrands, though, that have gone change somethingnew insilhouetteis “The Even J. Crew evolving is thelookofLudlow. But thelooserlookcomingalongatBrooks isn’t

WWD.COM creams: Jock-itch way. of menthewrong suits rubbedalot Losers: Tight of thepast. skinny tieathing lapel, making the suit hasawider The slouchy Skinny neckties: in fashion. naturale” isback legs, sogoing “au need to shave there’s nomore back of thesock, With thecome- consumption: Razor blaze 2007 aficionados: CrossFit form-fitting suits. muscles in more flaunting No ras: Short-rim fedo- storage. going backinto suit isfinally with theskinny worn sooften and annoying hat The trendy 2015 shops: Tailor repair their muscles. the trousers, not talking about — andwe’re them ripped pants often got superskinny themselves into squeezing Szmydke, Alessandra Turra andPayal Uttam men aren’t abouttobeaslouch. ■ of it appearsfornow the majority that, atleast, might lookgood ontherunways ofMilanorParis, three years back.” I’m sellingalmost99percent slim-fit suitssince one wantstowear looseclothingontheirbody. years. “People are more healthy andslim sono believes foranothertwo slim suitswillbeinstyle reached themainstream.” they are usedto. That’s trend acuethat [this has] might notbeskinny butit’s fit, slimmer thanwhat eration ofguys wanting slimmer-fitting suits, too. It Chang, we toseeaslightly are starting oldergen- years atAscot Inthelastoneortwo a slim suit. to 90percent oftheguys who comeinwant toget guys outof‘MadMen’ much or‘Suits.’Pretty 85 come inforslim suitsandtheywanttolooklike Chang Co. Ltd., said,“We seealotofyoung guys for Tcny, ayounger ofAscot labelandsubsidiary small group ofindividuals,” Asafsaid. still initsearly phases andonly popularamonga comeback oftheclassic1920s lookis bootlegger slim suitsstilldominateintermsofdemand.“The straight outoftheshow “Boardwalk Empire” — of meninterested invintage suits—something around for awhile.” suits, soitseemsthattheslim suitwillbestaying commonly seenwearing extra-slim and boyish in Hong Kong, Japan, Korea andTaiwan are still industries icons from majorAsianentertainment national Tailors inHong Kong, said,“Malefashion and brands don’t expect aquick shift. that ourcustomersgo st of slouchy, fluidpants,butwe doitby touch,so the slim fitsandasaretailer, we betmore onthis. commercial proposals inshowrooms go toward by butvery oftenthemore Zegna Pilati), negildo cially withlarge fluidpants(from Marnito Erme- on themen’s silhouette playing onvolumes, espe- in thepastfew seasons,we saw different proposals standard truethat for customers. the‘regular’ Itis ers, andtoday slim suitsare more andmore the for themen’s silhouett label, said:“Slimhasbeenavery strong direction manager ofmen’s apparel, homewares andprivate arewaistcoats definitely atrend we like.” fashion-forward customers. Pleated trousers and With contributions from Lorelei Paulina Marfil, So while pants theloosersilhouette andbaggier BaronPeter cofounderofLee Fashion Lee, Ltd., Justin Chang,businessdevelopment manager While thecompany hasseenagrowing number Mark Asaf, ofEmpire managingdirector Inter- In China,where definitely slim in,retailers is “Of course,ourrole topush forthenewtrend is Karen Vernet, general Printemps’ merchandise Men wingtips: Chunky once again. its dayinthesun loafer canhave shoes. Now the pair of thick-soled displayed witha was generally shoes look no-socks-with- e forinternationaldesign- ep by stepintothis.” The crises: Middle-age — ALEXBADIA vertible instead. past. Buyacon- now athingof the to looktrendy is suits supertight squeezing into over-40-year-old The

Photographs courtesy of Shutterstock; Runway by Giovanni Giannoni and founder of Stock. diker, chief executive officer appearances,” saidJimSne- jacket. “She makes two as insidethesportsman’s of thedenimjacket aswell embroidered ontheback go-based Stock Mfg. Co. a moonlogothatChica- its signature adsisagirlin founded in1903andoneof shooting blazer for $250. for $175andathree-button $88, adenimtrucker jacket for $35, ridingpantsfor ads, includingpocket T-shirts pieces inspired by itsvintage of men’s wear madeupof six duced acapsulecollection The beercompany hasintro- don’t make anoddcocktail. hoping beerandfashion ¬ Living Large SPORTSWEAR — for $24,500, isthestore’s most expensive sneaker instock. store inSoHothatopenedthisweek. Thisshoe, whichretails family, isavailable atStadium Goods, anew sneaker resale Undefeated, whichoriginallywas onlygifted to friendsand they were never meantto besold. Butnow theAirJordan IV Undefeated oncreating 72pairs of military-inspired sneakers, ¬ Pair Rare BY THENUMBERS ARIAHUGHES Miller HighLife was MillerBrewing Co. is WhenJordan Brand collaborated withLos Angelesboutique all. about abeerbrand, after to 7p.m. eachday. Thisis Happy hourwillbefrom 5 York openthisweekend only. at 40Ludlow Street inNew in Chicagoandapop-up brick-and-mortar location Stock’s onlinestore andits through the1980s.” on piecesfrom the1910s created thecollection based interesting printads, sowe ideas. They hadsomereally archives to comeupwith and asked to lookattheir idea for acapsulecollection that. We pitched themthe do something coolaround was “looking for someoneto itage cansandbottles and this monthby releasing her- brand isminingitshistory The linewillbeavailable at Snediker saidthebeverage —JEAN E.—JEAN PALMIERI Price Points: been addedto Wolverine’s fall collection. and full-grain leathervisor. Thesamepattern isusedonaboot thathas Peninsula Cap, avariation of itsoriginalhatinared andblackplaidwool News Hook: America. enthusiasts andlumber-sexuals —allMade in bags andapparel targeted to theoutdoor model into alineof men’s andwomen’s hats, Thorsen have expanded beyond theoriginal it down. Today, daughter Bobandhis Gina founding family, which wasplanningto shut Ironwood, Mich.,bought thebrandfrom the owner ofJacquart Fabric Products in Fast-forward to 2001when Jacquart, Bob put while hewas working ontherailroad. thatwould clothvisor earband andasoft stay withapull-down fashion abaseballcap temper —asked wife Ida his ifshe would acquired thenickname dueto bad his “Stormy” Kromer —legend hasitthat he Backstory: Stormy Kromer IN THESPOTLIGHT For fall, thebrand hascollaborated withWolverine onthe Thehatretails for $69andtheboot is$399. Itwas1903 when George culture here.” — single day. Ithinkwe are to trying create that mony. “In Japaneveryone wears a pinevery stores includingColette andOpeningCere- said Roschwalb, whoisjust starting to sellto lections. “I thinkapincancreate amoment,” tapped Roschwalb to create capsulecol- Brand andPuma have taken notice and emojis to KimKardashian’s face. crying culture for hispindesigns, whichrange from sell outwithinanhour. Roschwalb looks to pop which retail from $12to $25andsometimes limited-edition collections of pinseachweek, who hasattempted to dothisby releasing downluxury to themasses,” saidRoschwalb, Mercedes-Benz asanoperations manager. company hefounded in2014 after working for has poured thisknowledge into Pintrill, thepin about priceandmore aboutindividuality. He of choiceandtheirdefinition of isless luxury and slangare theircommunicationmethods nial customer. Hegets thatmemes, emojis ¬ Pin Pal ACCESSORIES Bigger brands suchasPerry Ellis, Jordan “Luxury isexclusivity, butIwanted to bring Jordan Roschwalb understands theMillen- Briefs ARIA HUGHES WWD.COM OCTOBER 2015, No. 2

35 higher multiples because there’s a bet that things [Vox editor in chief] on MSNBC, and NBC Sports transition easier to the digital landscape? will change over time and so media is experienc- has SB Nation — so there’s already a lot of organic, There are smart people running these busi- MEDIA PEOPLE JIM BANKOFF ing that too. We are clearly seeing some big shifts natural ways to work together. If you look at our nesses. Ten years ago you could have said, “These in the way that people consume things. Bets are assets — we do digital really well, they do video people have their heads in the sand” and maybe BY ALEXANDRA STEIGRAD being made on companies that the market thinks and scale really well, our audiences tend to be they did. It’s far from that now. But the question Chairman and chief executive officer, Vox Media have potential to be among the future leaders. younger, their audiences tend to be a little older. is, even if they are very aware, how much can they Are the valuations based more on the prom- What we have is complementary. We can learn do about it? For instance, if you have all this cash ise of a company than its financial picture? from one another, but we can find ways to grow flow coming from one source that is not growing, “WE TRY TO CREATE AN ORGANIZATION THAT EMBRACES AND These are sophisticated investors. When we talk together. We can expose our content and brands you may have to jeopardize that cash source by [about] the bubble of the dot-com boom, which I to new audiences and they can do the same thing embracing a new model — how willing are you to THRIVES ON CHANGE. THAT’S WHAT WE ARE AIMING FOR.” lived through, a lot of it was driven by day traders via us. Generally speaking that’s what we’ll seek do that? If you have a culture and a workflow that that didn’t have too much sophistication and got to do, whether it’s in the content space or in the is built up on one model and you have to jeopar- caught up in it. I don’t see that happening today. advertising space. dize that culture and workflow — how willing are It’s not to say that things might go up or go down When you look at the Verizon/AOL deal or you to do that? It’s about real, structural trade-offs but it’s a different kind of thing. There are compa- Fusion and Univision/Disney — is this a model that have to be made. It might actually be a bad nies that the investors are looking to understand. we can expect going forward for networks? decision to make some of those trade-offs. They are smart and do their diligence and they I think so. You’re seeing more of it because Some magazine brands have trouble finding place their bets. I think they are investing in real you’re seeing enlightened companies on both a voice on the Web and fall into the trap of business models. In our case, we’re profitable and sides that are saying: “Hey, there’s higher growth mimicking the tone of viral sites. How do they we’re growing. This is not the Pets.com era. going on elsewhere.” It may be negative growth forge a unique Web identity? When did you reach profitability? or it may be flat, but [incumbent companies] are I talk about these structural issues — and brand Last year, in 2014. saying: “How do we continue to grow in the future is one of them — which you’re getting at, and You just acquired Re/Code. Are you looking and what are the combinations that are going to you’re right. One of the nice things about our to make more acquisitions? make that work?” brands is…they have permission to program to We’re not necessarily a company that grows by Not all of the deals are successful. How will audiences wherever their audiences are. It’s a acquisition. We consider acting when there’s a yours differ? generational thing. Some of the older brands — just great opportunity. Both with Re/Code and Curbed, In terms of what’s going to make it successful — I because they’ve had storied pasts and have made which was our other sizable acquisition, they think it’s respect for culture and respect for not an indelible impression in the consumers’ mind, both fit really well with our strategy and with our trying to interfere, retrofit an older model onto a it might be harder to travel into new places. Not culture, and with where we wanted to go forward new one. I was — for better or worse — a child of impossible. The smart minds will be able to figure — you know, talent-based new media brands that the first merger of AOL/ Time Warner. [Laughs.] out how elastic the brands can be. You do have could benefit from our technology, our platform, There were a lot of horrible things, but a few great some advantages. You have recognition.

“IT MIGHT BE HARDER FOR SOME OF THE OLDER BRANDS TO TRAVEL INTO NEW PLACES. NOT IMPOSSIBLE. THE SMART MINDS WILL BE ABLE TO FIGURE OUT HOW ELASTIC THE BRANDS CAN BE.”

our sales infrastructure. Re/Code brings another things, too. I think in our case, the structure that What industries outside of media do you dimension, which is the conference business. It’s we have — NBC Universal is investing but they look to for inspiration? a little bit more of a C-suite audience, too. That’s don’t have control to determine our destiny — we I get inspiration from companies that have had new for us. We’re influential but we’re influential maintain our independence. In fact, our indepen- to reinvent themselves and do things rapidly. on a consumer base as opposed to a business dence is strengthened because of the commercial What sets this industry apart is that the pace of base. I think that will be a good dimension that partnership that we’re entering. That’s a great way change is just so rapid. I try to look at companies they bring. to impact one another, learn from one another. that try to set up cultures that are optimized to How will you use the NBC investment? What But there are other ways of doing it. succeed for a rapid pace of change. We try to are your thoughts on cable companies invest- You’ve said you want Vox to do for digital create an organization that embraces and thrives ing in digital media companies? media what Condé Nast did for magazine on change. We aren’t perfect at it, but that’s what We kind of have had a relationship with Com- publishing. How do you view Vox compared we are aiming for. cast Ventures for a while. We’ve known a lot of to Condé and rivals Hearst and Time Inc.? Was this a takeaway from being at AOL? the NBC people for quite some time — even for I don’t want to be compared to anything, but It was a takeaway. I probably learned more im Bankoff, chairman and chief executive officer of unique views, while Vox Media nabbed 58.1 million some of us, like me, dating back before I was one thing that we do have in common is that we from the bad parts than the good parts. There and Vice pulled 49.2 million. even in this job. I had relationships, but since I’ve operate in multiple content categories with multi- were a lot of great leaders at AOL but there were Vox Media, isn’t exactly a typical start-up ceo. For one, From Vox’s New York office, Bankoff, 46, (who been here, we’ve had some small partnerships. ple brand names. In the new media space, you’ve some structural things that ultimately led to it he has been in the media business since the early days looks much younger in person than in his cor- In addition to the investment, we plan on having seen the rise of companies like The Huffington not being as great a company — specifically not porate headshot), talked about Comcast’s recent collaborations across a variety of different areas Post, Buzzfeed, Vice or Mashable or whatever, and embracing change and setting up an environment of the Web — think Netscape — and he worked as an $200 million investment in his company, which is that are still being defined, so I don’t even have a one key difference is that we’re the only company where there isn’t an expectation that the old way now valued at a hefty $1 billion, what the future specific to point to. One general area, however, is that has proven that we can successfully grow of doing things is going to lead to success. What executive at AOL when they were the only game in of TV will look like and whether we’re living in a around programming and finding opportunities multiple brands in multiple categories and do so AOL created was a phenomenon. But you can Jtown (Remember dial-up?). ¶ He rose from president digital media bubble. to make video programming together that would with a common platform. All of our brands have a see how quickly what was going on there became run across our platform, their platforms. unique identity. This is not like portal.com/sports. outdated and new companies started to nip away of AOL Web properties in 2002 to executive vice pres- Valuations are very high now for media Would that video be for the Web, not for TV? It’s hard to do it in the other direction. It’s harder at it and succeed where AOL didn’t. You can see ident of programming and products until 2007. Two years later, companies like Buzzfeed, Vox and Vice. Are We’re not limited to purely digital distribution to start as one brand and splinter off; it’s harder it with media brands that were launched just 10 we in a bubble? but that’s what the future is, so we’ll definitely to change perception and authority. years ago and may not have innovated at the pace he founded Vox Media, which includes a variety of sites that have I honestly don’t focus too much on valuations. focus on that. But they reach tens of millions of Gawker Media has multiple brands but some necessary to be on top of the game. distinct Web addresses, staffs and coverage areas, as well as a na- But there’s a lot of disruption going on — not only people across the categories that we operate in, have floundered, and overall, the company With so much investor money in new in the media — in all industries. Technology is whether it’s sports, where there’s great comple- has struggled with its identity as of late. Why? media, will there be a point where some of tive advertising unit. Sites include The Verge (technology), Eater coming in and changing the way things get done. mentary material between NBC Sports and our I try not to comment on other companies, but these firms will be forced to go public? (food), Racked (fashion), Curbed (real estate), SB Nation (sports), What you see in valuations is the market valuing SB Nation... I’ll say this: I have tremendous respect for Nick I don’t think so. I don’t know. We have obliga- the potential for the companies that are using You get greater reach and for them, it’s [Denton, Gawker founder and ceo] and what he tions to provide financial returns to our investors Polygon (gaming) and Vox (news and politics). This sets Vox apart technology to create change. Stepping aside from digital reach, correct? has built. Frankly, he’s been an inspiration to me. I and to create opportunities for our employees or from rivals such as Vice Media and Buzzfeed, which have verticals media for a minute, you see that with Uber, you Yeah. Our skills and our reach are complemen- met him in my AOL days and I really admired what else they won’t want to work here any longer. An see that with WeWork. There are companies that tary. We overlap well in our topic areas — sports, he was building. I will leave it at that. Gawker is initial public offering is one route to do that, but through their portal sites. Buzzfeed is still king of the trio in terms are using technology to change things. news, lifestyle. Re/Code and CNBC already have Nick and he knows what to do with that company. we’ve been out there for seven or eight years and of traffic, ComScore said. In August, Buzzfeed lured 85 million They’re the ones that are generally getting the a partnership, you’ve probably seen Ezra Klein Why can’t traditional media companies have found a way to satisfy all those conditions. ■

36 OCTOBER 2015, No. 2 WWD.COM Photograph by MARK MANN WWD.COM OCTOBER 2015, No. 2 37 Hammer Time Julia Roberts and Ed Ruscha? Hollywood and the art world collide at the Hammer Museum’s Gala Jordan Barrett, Devon Windsor Cate Blanchett in in the Garden. and Anwar Hadid. Giorgio Armani. Aloe Blacc

It’s a rare feat for an year and was elevated to cohost SAT event to feel razzle- for this year’s event, said, “Muse- All in the Family OCT dazzle and cozy at the ums can seem like big, scary, un- 10 same time, but such was approachable places and that’s As the New York Film Festival drew to a close, the Hadids were the talk of the New York party circuit. the case at the Ham- not the feeling here. It seems to mer Museum’s annual Gala in be part of the community for the the Garden, which honored Paul people as well as the artists.” McCarthy and Diane Keaton on It was Martin and Stone who Kate Winslet Saturday night. While there was had the job of ushering Keaton in Tom Ford. a heady mix of art and entertain- onstage. Martin cracked, “It’s ment luminaries in the museum been a longtime dream of mine courtyard — Julia Roberts and to come to the Hammer and Matthew Barney, Salma Hayek introduce Emma Stone and have and Ed Ruscha, Will Ferrell and her introduce Diane Keaton.” Mark Bradford, plus Steve Martin, The museum scored another Emma Stone, Kiernan Shipka and coup in honoring artist and provo- Bottega Veneta’s Tomas Maier, cateur McCarthy, who delivered who was one of the hosts — most a rambling stream-of-conscious- guests said it felt like a gathering ness acceptance speech that of close friends. he read off his iPhone. “Mike “Of all the events I go to, this is Kelly tells me he hates parties… my favorite one,” said Armie Ham- They are about nothing…raising Tommy Mottola, Thalía, mer, whose great-grandfather money, mania, status…I told Mike, Joe Jonas, Dee and Amanda Peet in Armand Hammer founded the this is another way of looking, of Tommy Hilfiger. Bottega Veneta museum. He may have been supporting other artists,” Mc- and Lindsay biased, but he got it right when Carthy said. Dwelley with Diane house am I at again?” It was John he said, “It’s small, it’s quiet, it’s It was fitting, then, that Aloe If the Kardashians are Keaton in Comme TUES Demsey’s. everyone who wants to be here Blacc closed the evening with America’s “first family,” des Garçons. — FRI the Hadids are quickly Meanwhile, at the New York who loves art.” a rendition of Marvin Gaye’s OCT Emma Stone and shaping up to become Film Festival, the spotlight was Roberts, who attended last “What’s Going On.” — MARCY MEDINA Salma Hayek in 6-9 second in command. on two of Hollywood’s leading Bottega Veneta. On Thursday night, dramatic actresses: On Friday, Lauren Remington Daniel Moder the entire brood — Gigi and Bella, two-time Oscar winner Cate Platt with Julia Liz Goldwyn and plus brother Anwar — turned up Blanchett, wearing new designer Roberts Natasha Lyonne for mom Yolanda Foster at the Yacine Aouadi, premiered Todd in Bottega “Uniting for a Lyme-Free World” Haynes’ “Carol” at Alice Tully Veneta. Gala at Cipriani 42nd Street, Hall — she wore Giorgio Armani where she was an honoree to Wednesday’s screening of alongside Ally Hilfiger and singer James Vanderbilt’s “Truth.” And Thalía. on Tuesday, the festival honored After the long collections Kate Winslet, who delivers a season, though, all attention was standout performance in the on the sisters. main slate feature “Steve Jobs.” “I was freaking out,” said Bella On the heels of her 40th birthday, of her first fashion month. “I was aging and photo retouching in the trying to be all cool girl, but really media were on the actress’ mind. I was like, ‘Ah, I don’t know what’s “Whenever I do see my image happening!’” digitally altered in any way I just That same night, Liz Goldwyn, speak up about it because I don’t a member of another West Coast want my daughter to look at dynasty, was throwing her own those images and say, ‘Wow, you bash in the Upper East Side for really look like that?’ It’s so dis- her book, “Sporting Guide: Los honest. And I can’t deal with that,” Angeles, 1897.” Among the guests Winslet said. Her words were met were Lauren Remington Platt, with a round of applause. Kiernan Tomas Maier with Shipka in Sarah Paulson Michael Buckner/REX by Photographs Zac Posen and Natasha Lyonne, – LAUREN MCCARTHY, LEIGH Marisa Tomei in Bottega and Matt Bomer in Gigi and who at one point asked, “Whose NORDSTROM AND ALLY BETKER Bottega Veneta. Veneta. Bottega Veneta. Bella Hadid TYRH Eichner and Steve Amber DeVos by Photographs

38 OCTOBER 2015, No. 2 WWD.COM EDITED BY TAYLOR HARRIS AND ERIK MAZA Arts & Culture BY MARCY MEDINA Report Card Showtime, Synergy! With Aubrey Suiting Up From Washington D.C. to Hollywood, some of the style highs and lows of the week.

Peeples, Jem is back in all her DWe’re glad he DFlawless. SK-II DHe would benefit DThe bouncy got rid of the freaky chose the right from a round of ponytail, single facial hair he grew pitchwoman. spray tanning. earring and red lip for “Pan.” The clean- DShe is a red His ghostlike indicate that she’s bubblegum-pop glory. cut look makes him carpet risk-taker complexion is down to have some a very youthful 47. whose fashion not ideal. fun. But from the neck down, things go It’s a common joke in Hollywood and Scooter Braun, Bieber’s manag- DThe navy suit is choices are on par DAlthough a bit too safe — it’s with her selection of the slim black south, figuratively. that most young actors cast in the er, to create an all-new soundtrack what you’d wear roles. This dress is suit has a DWith the red remakes of popular cartoons are too for maximum Top 40 radio exposure. to a coworker’s by a very lucky new youthful pumps, red lip and young to recall the originals. Peeples is herself part of the plan wedding. And it’s a designer, Yacine appeal, red floral patch on a That’s certainly true of Aubrey to reintroduce a 30-year-old char- little tight around Aouadi. The tattoo when paired taffeta dress combo, Peeples, the star of the upcoming acter to new audiences: a young the chest. We details take the look with the it’s very “Casino.” film “Jem and the Holograms” face with strong vocal and acting love that he from safe, figure- geometric Why, oh, why did she (Universal Pictures), based on the be- chops. After a string of guest-star- pumps iron, but flattery to poetic, patterned tie go matchy-matchy? loved animated series about a young ring roles on series like “Drop Dead a tiny alteration personal and edgy. and striped DThe dress isn’t woman who transforms into a pop Diva,” Peeples made a name for would go a long Bow down. shirt, it feels the perfect fit and star whenever she utters the immor- herself on ABC’s country music soap way. DIt hurts to file out of place. perhaps it’s more tal phrase, “Showtime, Synergy!” “Nashville.” She described the role of a complaint here DThe suited for a luau than “Jem” premiered in 1985, roughly a the up-and-coming singer-songwrit- because black burgundy a premiere, but she decade before Peeples was born. er Layla Grant as “a game-changer,” pumps are the most lace-ups add could have worked “I had no idea what it was,” the one that helped inspire her own innocuous shoe a pop of color the dressed-up 21-year-old says of landing the role. songwriting. out there, but the to the outfit and beachy vibe But, no doubt about it, she knew it “It’s very meta because the people dress deserves complement the with hair down was a big deal. who play musicians on the show are something slightly neckwear. and fancy flat With a bubblegum-pop sensibility musicians in real life, but most of bolder. sandals. and an ahead-of-its-time girl-power us have not had the opportunity to message, “Jem” was popular in the pursue that,” she says. “This show three years it was on the air and, has opened up those doors, like I’ve over time, became a cult favorite, gotten to perform at the [Grand Ole] much like predecessors “Josie and Opry and go on tour. So we’re playing the Pussycats” and “Ladies and these characters whose musical Gentlemen, the Fabulous Stains.” careers are evolving, but that’s also B+ A B- C- Those fans of the original will find a happening to us at the same time be- lot to appreciate in the live action ad- cause we play these characters.” aptation that hits theaters Oct. 23. Peeples, who did professional the- Hugh Jackman Cate Blanchett Steve Martin Olivia Wilde “All the messages are still there — ater as a child and began classical family, right versus wrong, figuring vocal training at age 10, also plays DThe loosely DAlthough he has DThe gentle DThe slick gray hair guitar and piano, which she says swept-back hair an obvious receding makeup and hair is a bit disturbing helped her develop her musical style. with the center part hairline, the cropped complement the and slightly creepy, “There is a big responsibility “I’m a blues singer mostly, and I al- frames her face and cut comes across movement of the especially for a ways knew that I wanted to write but that million-dollar as very refined. dress. The soft South Carolina that comes with it. It’s like I didn’t really know what about until smile that makes DThe play of color breeze is working politician. stepping into a bit of history.” recently. I’m hoping to have an album you want to forgive and shine in the for her. DHe looks like he released in the next year and a half,” her for what’s suit and tie is DThe earrings are stepped out of a she says. Still, “I never thought about happening below. the ideal choice bigger versions of time machine Aubrey Peeples quitting acting. They’re both such DOrange and teal? for a night out the miniature jewels from the Eighties. in a scene from strong passions of mine and they are Was there a Miami on the red studding the The broad “Jem and the very different.” Dolphins game carpet. latticework shoulder, slouchy Holograms.” As for her personal life, don’t ask on? Otherwise, this DThe bodice. The silhouette and if she has boyfriend. “I don’t want to color combination ultralight beige coordination baggy pants are talk about that. You can definitely on chandelier shirt takes the is nice, not more Giorgio find out if you follow me on social earrings is ensemble to a overbearing. Armani 1980 than media. It’s pretty obvious right now,” inexplicable. whole new height, DCan you tell this spring 2016. He’s she says, grinning. (Facebook and DShe revealed showing his woman gave birth swimming in it and it Instagram show cute, emoji-heavy that she let her knowledge three weeks overpowers him. photos of Peeples with Nashville- husband choose of elegant ago? Probably DThe perforated based guitarist Daniel Donato.) her outfit. He must men’s wear. not. It’s also wingtip shoes are She’d much rather talk about the want her all to just really pretty a good choice, but literal skeletons in her closet. “I col- himself, because regardless of the nylon bag has lect them. I have a bat and a bird and the blazer over the recent motherhood. got to go. Invest in a snake, and a butterfly collection,” she dress makes no leather briefcase. out who you are and self-expression,” says. “Mostly I just like to write music sense. Peeples says. “Also all the classic and spend time with my family and Jem performance looks are su- friends and jam.” per-inspired by the cartoon and the The quirks and jamming sessions Eighties in general. There’s lots of are all in keeping with alter ego Jem, pink and leather and makeup and and the actress playing her hopes starbursts.” the shared personality translates Producers have taken steps to to film. C- A B+ D make new fans as well, tapping Jon “There is a big responsibility that M. Chu as director — he also directed comes with it,” she says. “It’s like Julia Roberts Don Cheadle Carey Mulligan Trey Gowdy

two Justin Bieber concert films — stepping into a bit of history.” Getty by REX; all others by photograph Gowdy

■ at TMG L.A. Saffaie Roxy by Makeup Artists; at Forward Polillo Alex Studios; Hair by Universal of courtesy Film still

40 OCTOBER 2015, No. 2 WWD.COM Photograph by EMMAN MONTALVAN Styling by LISA MOSKO WWD.COM OCTOBER 2015, No. 2 41 The Nordstroms Quiet Giants By David Moin Photograph by Kyle Johnson Jamie, Blake, Erik and Pete Nordstrom may be lowkey and low profile, but they run one of the most innovative department store groups in the world – and are aiming for sales of $20 billion by 2020.

Jamie, Blake, Erikand Pete Nordstrom. I maintain along-term forgrowthmaintain thatmany vision ing deepinvolvement meansthecompany can publicly owned, the Nordstrom family’s continu- $20 billioninannual salesby 2020. Andwhile itis Nordstrom,Seattle-based which shooting is for at $5.1 billion,are smallerthanthe$13.1 billion, with $11billioninannual revenues, and Neiman’s, Bay. Anditremains advantage. astrategic from Macy’s, Holtdistinct Renfrew andHudson’s wider thantheofferingatSaksorNeiman’s and Sam EdelmanandTopshop. It’s anappeal that’s Simpson, from toJessica andLanvin Prada,Céline thebreadthis ofmerchandise andpricepoints— thoughwhat remainssentations, mostprominent designer labels,andpumpinguppre- floors like Space, ashop showcasing emerging experience; bringinginnovations toitsselling design atkey toadvance theshopping locations all ofthetime.” Weit tendstohappen withstart-ups. lookatstuff that’s where alotofinnovation happening and is we Online, are toaddourcapabilities. trying It’s not thatwe are againstlarge acquisitions,but investments, we haven’t donelarge acquisitions. says ErikNordstrom. “Ifyou lookatmostofour relationship, andany ofthosewe are opento,” of anacquisition, aninvestment, oracommercial in thatandrelationship helpusonthatjourney,can we are very interested from areas you are unaware of. Ifanothercompany Nordstrom andgrowth. newcapabilities Jeffrey stores, HauteLook andTrunk Club, giving in brick-and-mortar including andtheInternet, ofout-of-the-boxhas alsobeenastring acquisitions free shipping before thecompetitiondid.There on theoff-price opportunity, offering andbegan Avenue, NeimanMarcus andMacy’s Inc.jumped up theRackoutletchainlongbefore SaksFifth eachother.support ramping Thecompany started mobileandstoreof e-commerce, operationsto —theconvergence inthe21stcentury retail success petition, Nordstrom got ahandleonwhat drives innovative retailers around. Years before thecom- hasstealthilyfirst,” becomeoneofthemost ioned valueslike “thecustomeralways comes pany, always associated withtradition andold-fash- inable forNordstrom. Yet the114-year-old com- Nordstrom stores year. initially to30this real well.” a working partnershipandit’s beenworking Drexler says. “IfeltNordstrom would provide hesitate. customerslikedthat his Madewell. Drexler didn’t Then there itssheer is size.Hudson’s Bay Co., In addition,Nordstrom rolling is out anewstore innovation is allaround.“There Itoften comes Not longago, adealofthat kindwasunimag- Well enoughtogrow from thedistribution 15 “At theend oftheday, you trustyour instinct,” tion, andhehadresearch indicating more —theentire Madewell collec- ButNordstromManhattan. wanted at770headquarters Broadway in ler invited Pete toJ. Crew Group’s denim toNordstrom stores, soDrex- Madewell division wantedto sell ground forbothfirms.Drexler’s But itwastimetobreak somenew Drexler inseparatefashion orbits. approach, puttingNordstrom and differs from Nordstrom’s market ing andretailing itsown product, legend,” Nordstrom recalls. a nervous guyis meetinghim.This Drexler forthefirsttime.“Iwas strom wasseeingMillard “Mickey” 2014t wasOctober andPete Nord- J. Crew’s structure, design- vertical could take theform WWD.COM

OCTOBER 2015, No. 2

43 other retailers cannot afford. Nordstrom aims a store in Seattle with his friend Carl Wallin, called to spend big to reach its $20 billion goal, setting Wallin & Nordstrom. The shoe store evolved into a $4.3 billion in capital expenditures for the 2015- shoe chain that added apparel in the Sixties with 19 period. This year alone, capex is expected to the purchase of Best Apparel. A third generation grow to $1.2 billion, from $800 million in 2014. of Nordstroms took over in 1968. The company The spending has sometimes been at the expense went public in 1971. The first Rack opened in 1973 of short-term profits and to the dismay of Wall in Seattle. Nordstrom expanded to Alaska in 1975, Street, though the net profit margin has held up California in 1978, and in 1988, the first East Coast at 5.5 percent over the last 12 months, with oper- store opened in Virginia. ating margins at 10.1 percent last year. Hudson’s The Nordstrom brothers were candid about the Bay, also investing strongly in its business, over challenges ahead, like turning the Canadian oper- the last 12 months has been operating at thinner ations profitable, opening a New York flagship, margins, while Macy’s margins are on par with and the need to get greater productivity from the Nordstrom’s. Over the past five years, Nord- 120-unit full-line fleet that, like most department strom’s stock has risen with the market, almost stores, has been flattish, last year slipping 0.5 doubling to more than $68 from above $38. percent. The Rack, on the other hand, rose 3.8 percent; nordstrom.com rose 23 percent, and the uch of Nordstrom’s increas- nordstromrack.com and HauteLook business was ing costs are associated with up 22 percent. building infrastructure and They also said the first two Nordstrom stores in full-line stores in Canada; Canada, opened over the past year in Calgary and pumping up key locations Ottawa, are running ahead of plan; the Vancouver in Seattle, San Francisco, flagship will be a top-five volume generator; brick- Chicago’s Michigan Avenue and-mortar is here to stay; the company’s women’s Mand South Coast Plaza in Costa Mesa, Calif., and business, which long lacked punch, has emerged rolling out Rack, which is expected to reach 300 as a top performer, and e-commerce and Rack locations by 2020, from 188 currently. hold great promise for growth. Nordstrom Canada also is seeing losses due to “It is fair to say that there is a lot that we are start-up costs of its first three stores, which are working on and there is a lot we have been doing in Calgary, Ottawa and Vancouver, though with to lead up to this moment,” says Blake. three stores seen opening in Toronto in the next But their biggest challenge lies ahead — and it’s two years, critical mass is expected to bring the one that will make the usually low-key Nordstrom subsidiary to profitability. clan much more visible in one of the world’s most “Sometimes we get criticized by Wall Street for high-profile — and competitive — retail markets: the amount that we spend, particularly for the last Manhattan. The flagship is a costly gamble that, couple of years, because we look at [retailing] as if it succeeds, will strengthen the retailer’s ties to being so dynamic,” says Blake New York’s designer community Nordstrom. “And if we aren’t and definitively place Nordstrom making those investments, on the same plane as Neiman’s where will we find ourselves “It is fair to say (which is building its own flag- Designer handbags at in three to five to 10 years from ship not that far away) and Saks. Nordstrom at the Pacific now? We are trying to find the that there is a If it sputters, though, the blow to Centre in Vancouver. right balance. We’re trying to Nordstrom’s reputation would be sensitive about today’s busi- lot that we are be significant. ness, but also be in a position of working on and Operating in New York will be strength down the road. So that’s complicated on several levels. why this is an interesting time, there is a lot we For one, the 285,000-square- because lots of things are coming have been doing foot, seven-level site at 225 close on a few, including the former Drake Hotel fun part of retailing, the exciting stuff.” trust with them and trust goes both ways. We show of our stores have a real credible end-to-end together within that strategy. West 57th Street, at the base of on Park and 57th Street, 3 Columbus Circle in Mid- While the store interior and aesthetics will customers we trust them with a liberal return designer offer,” says Pete, meaning the same “If we think back over the to lead up to this what will be the world’s larg- town across from where Nordstrom now is slated change with the construction of a Manhattan policy. When a big company shows that they trust designer labels appear across shoes, accessories, years in the history of our com- est residential tower, will be to go, and Hudson Yards under development on flagship, “The biggest differentiator for us is our you, that makes a big impact on customers. If you coats, dresses and ready-to-wear. “At least half of pany, from a milestone point moment.” Nordstrom’s most vertical unit the far West Side, where Neiman’s will go. Finally, continued focus on servicing customers. That’s a come in with a tie and say, ‘I bought this tie last our stores have some element of designer. of view, going from the shoe (generally the stores are two or two years ago at a press conference in Manhattan, main ingredient for any retailer, though we make Blake Nordstrom week and I think it doesn’t go with anything I own. “The whole idea of being in the designer business into apparel, becoming three levels), testing the team’s the Nordstrom brothers revealed they selected a it the front-and-center issue,” Pete says. It’s not for me. I’d like to return it,’ I can do one business, based on scarcity [to create exclusiv- a public company or entering ability to come up with mer- 57th Street location, Central Park Tower, being One famous service story the family likes to tell of two things. I can say, ‘Let me see the receipt.’ ity and a strong appeal] doesn’t apply itself in southern California, or really chandise and attractions that developed by the Extell Development Co. is of a customer who returned a tire to a Nord- Give me your I.D., and put you through the whole all 120 stores. But our customers want the best unleashing an e-commerce business, today we drive shoppers to all levels. A 7,000-square-foot “I was standing there and it struck me they were strom location in Alaska, converted from a former police program like a lot of retailers have to do. stuff everywhere,” Pete adds. “We try to make think the company is uniquely positioned to take restaurant on the top floor will help. Then there closing a chapter on their father’s playbook, which automotive store, and got a refund even though Or you can say, ‘Sure, here is your money back. I sure the shoes and accessories and apparel work care of the customer.” is the question of vendors — brands with well-es- was to expand Nordstrom full-line stores across the clothier never sold automotive products. That trust you. I don’t need to see the receipt.’ When together.” “It’s interesting that Wall Street finally started to tablished businesses at rivals Saks, Bloomingdale’s the United States. That was the big play,” says a might not happen today, and other retailers have was the last time you felt trusted by your bank Topshop Topman, as well as Madewell, were understand the need to invest and grow smartly. and Macy’s might be reluctant to antagonize those source close to the Nordstroms. “Now here are been elevating their service to narrow the gap, or an airline, or by your cable company? Never. added, in 2012 and 2015, respectively, and Olivia Nordstrom broke the ground on all that,” says retailers by selling to Nordstrom. these guys having to compete in a modern world, a though at Nordstrom, “It’s been our deal for a long We have an opportunity at Nordstrom to be a big Kim, the former Opening Ceremony executive, Deborah Weinswig, executive director of the Fung “We’re spending real money there,” Pete different world that says growth is about the Rack, time. That’s how we win,” says Jamie. “Some retail- company that shows that we trust you and when joined Nordstrom in 2013 to bring further inno- Business Intelligence Centre. assures, reportedly to the tune of $300 million going international into Canada, and online. They ers compete on price, or promotion is their value that happens, our company gets really small. Our vation to the offering. So far, she launched the At the Sept. 18 opening of the Vancouver flag- to own its portion of the site. “Our opportunity is were walking in their own footsteps, not in their proposition. We earn customers’ business and company becomes the person that is standing in Pop-In@Nordstrom series of pop-up shops and ship, the three Nordstrom brothers — Blake, Pete not to do something completely different but to do father’s footsteps.” their loyalty by giving great service. I think we hire front of you. We’ve been doing that for a long time. the Space in-store boutiques, both in select Nord- and Erik — who share the title of copresident, as what we do in the best way possible. If we could Formerly regarding Manhattan as uninhabit- nice people and then we empower them. We put We are at our best when we are acting like a small, strom locations. well as their cousin Jamie, executive vice presi- just do a version of [Vancouver] in New York, we’d able, now the Nordstroms won’t be satisfied with them in front of customers and say ‘do your best.’ independent retailer, and you only do that when “Women’s apparel end-to-end — for us it’s been dent, president of stores, sat down for separate be thrilled.” just one store in the borough. “It’s also easy to An empowered person who understands empathy you have empowered people so they can build pretty darn good. It’s evolved over the years,” interviews in the store’s Bistro Verde restaurant A flagship in Manhattan was once hard to imag- get excited about lower Manhattan,” says Pete. and common courtesy and respect for people, and trust with customers.” Pete says. “It’s been among our better-perform- and bar. ine. The prior generation of Nordstroms that led “We’re looking, but something opening downtown is armed with tools and great merchandise, can be ing categories for the last couple of years. Our The brothers’ father, Bruce, is chairman the business were turned off by the high costs, before 57th Street is highly unlikely. We don’t have pretty good. Sometimes, it’s just about manners.” ootwear is another hallmark, stem- Topshop business helped elevate our whole emeritus, and the grandson of founder John W. construction hassles and competition associated anything downtown, but I wouldn’t dismiss it as The day before the Vancouver opening, Jamie ming from Nordstrom’s origins, younger side. The women’s designer business Nordstrom, who at age 16 immigrated to the U.S. with New York. However, after the fourth genera- a possibility.” addresses the team. “Rule number one: be nice,” while women’s apparel, up until has been pretty darn good. Coats and dresses from Sweden with $5 and not knowing a single tion assumed control in 2001, the search for a site The three-level, 230,000-square-foot Vancouver he says. “Rule number two is refer to rule number the last few seasons, lacked punch. have grown. We really have to keep moving stuff word of English. For five years, he labored in mines began in earnest. They scoped out sites on Park flagship, says Pete, provides “a good foundation one. Just be nice. Don’t overthink it.” To correct the situation, designer and evolving all the time. In women’s, the way and logging camps until earning $13,000 from a Avenue, Lexington Avenue, Fifth Avenue, the East to work with for New York, but we will have new Jamie explains Nordstrom’s view as follows: offerings have been pumped up. we lay it out, we [no longer] have all these hard stake in a gold mine in Alaska, and investing it in Side, West Side, uptown and downtown and came things and ideas we want to implement. That’s the “The way you earn customer loyalty is by building F “Between a quarter and a third separate departments that are clearly defined by 44 OCTOBER 2015, No. 2 WWD.COM WWD.COM OCTOBER 2015, No. 2 45 architecture. It’s a much more flexible area that the flip side, they don’t want to pay more. I don’t right, we should have the volume down the road. allows it to ebb and flow,” depending on which blame them. So what we have said is we won’t be One store, with the costs behind it, doesn’t work. brands and categories are trending. undersold in Canada. Yes, the prices are higher We are also adding Rack in fall of 2017, and over NORDSTROM’S Topshop’s fast-fashion, inexpensive rock ’n’ roll in Canada because of those duties, but we don’t time we will add the e-commerce business,” in INNOVATIONS image seems at odds with Nordstrom’s upscale, want to be undersold by any other retailer just Canada. “So when you add that all up, Canada has Free Shipping/ Digital Fitting Room Mirror higher-quality aura, though not when one con- like we say in the U.S. Today, we haven’t had any the opportunity to be a billion-dollar business by Free Returns siders Nordstrom is seeking new audiences. “If negative feedback or pushback from customers 2020,” though, “It takes longer to get to profitabil- A timeline of omnichannel advances at the retailer. you look at the breadth of range we sell, that with our pricing. It is higher than in the U.S., but ity in Canada than it does with our U.S. model.” Mobile Integrated Nordstrom [Topshop] product fits neatly within our whole we believe it is competitive in Canada.” With the opening of the Calgary store last year, Rewards expanse,” Pete says. “It’s true there is a level of and units in Ottawa and Vancouver this year, NEXT: Customer quality and price that’s just below what customers here are other concerns in Canada, Nordstrom lost $32 million in its Canada subsid- iPhone App MMS Texting App would expect. But we’re not talking about H&M including start-up costs. “That’s one iary in 2014 and estimates a $60 million loss this Mobile POS (FLS) Pinterest In-Store and Forever 21. There’s a big difference. Topshop of the reasons why we committed right year. Sales, says Blake, are ahead of plan, though Merchandising has not only attracted new customers, but our out of the gate with six stores,” Blake he wouldn’t specify by how much. “The only Mobile Optimized Site Curbside existing customers really like it. Topshop has says. “Our m.o. is to open one store minor thing with Ottawa is that it’s cold there in True Fit Pick-up Test great instincts around trend and fashion. It’s really Tand see how it does. If it gets a good reception, we March and we had a lot of spring merchandise. Like2Buy on Instagram the foundational brand for a younger part of our open a second. We were very fortunate that after So we were a little bit slower in that first month, Free Wi-Fi in all Stores women’s business.” looking for a long time, Sears [Holdings Corp.] but since then, it’s exceeded its plans and we’re Wanelo In-Store Buy Online/ HauteLook Merchandising In Canada, says Blake, Nordstrom has put its happened to be pulling back, and that Cadillac really happy.” Pick-Up in Stores Search My Store Return to Rack best foot forward. “You just can’t replicate what Fairview [the landlord] was able to get us five of With 120 full-line stores — far more than either Multi-ChannelMultichannel E-Receipts Rack you are doing in the States and come across the our six locations that Sears had. To have six stores, Neiman’s, Saks or Bloomingdale’s — “there aren’t Fulfillment iPad App Pinterest border, and it was very clear and evident to us, in spite of these higher start-up costs, if we do it a lot more new stores on the docket,” Blake says, Buyable Pins talking to the customer here, that they wanted noting the three upcoming in Canada, a relocation Store to Store the best we had to offer. They didn’t want Nord- in Los Angeles, moving the South Bay store to Del Store-to-Store Fulfillment Rack App strom Lite.” THE NORDSTROM BEAT Amo; the Oct. 2 opening in the Ridgedale Mall in Nordstrom has been doubly sensitive to pricing. Minneapolis, and later in October a store in the Launched Launched TextStyle: Other U.S. retailers entering Canada have been Mayfair Mall in Milwaukee, plus Manhattan. “If One View of International Nordstrom Same-DaySame Day Mobile Nordstrom Customer Text nordstrom.com Inventory Shipping Online Innovation Lab Delivery Pilot POS (Rack) Store Alert App Rack.com to Buy perceived as overpriced. “The Canadian cus- O Broad appeal from O Front-runner in you think about the country, and where we don’t tomer is very savvy on that subject,” Blake says. moderate to designer, cross-channel initiatives. have [full-line] stores, maybe you could argue [we 1998 2004 2008 2009 2010 20112012 2013 20142015 traditional to “Literally, 80 percent of the Canadian population contemporary. O Family-run but ruled by should] have one in downtown Boston. There are is within 100 miles of the U.S. border, so there executive committee. no opportunities. The second one maybe you is a very educated Canadian customer shopping O Track record of could debate is lower Manhattan. That’s it. We across the border. However, the real issue is there acquisitions to bring new O The Anniversary Sale. think we are in, for the most part, the key locations largest employer of tailors in North America. We [and are major stockholders, with the brothers and going into new regions in southern California, are cost differences crossing the border. The chal- capabilities and build for Nordstrom’s biggest event around the country,” he says. do pant-hemming for free in our stores. Here we each directly owning in the vicinity of roughly the East Coast, the Midwest, we were the youthful lenge is each item has different duties, so they long-term future. and only promotion puts Full-line stores, industrywide, are running flat, were shipping all these unfinished pants through two million shares], it means so much to them. alternative to a lot of those big iconic department new fall merchandise on vary. Let’s say they are roughly 10 percent higher O Service culture. sale in July which reverts and typically offset by burgeoning e-commerce nordstrom.com and we weren’t even telling any- There is no next generation. The three brothers stores that had been the foundations of those com- in the U.S., but it varies. On the one hand, they to regular price, post-sale. and outlet divisions. Nordstrom’s full-line units one about our tailors. Our customers were proba- work well together, with a very clear definition munities for a long time. We were the youthful recognize there are these duties or taxes, but on have higher selling costs, are less promotional than bly going down to their local dry of responsibility. They have dif- alternative and that served us really, really well. others but generate higher margins. “Given health cleaner, with a little neon sign ferent personalities. They don’t We have got to make sure that we continue to be costs going up, wages, whatever, you can’t lever- saying, ‘we do pant hemming’ necessarily hang out together, in that spirit, a youthful brand, and that’s hard to age the business on flat. You are going backwards,” and having a crappy experience. “We have but they do know how to work do. I think the minute you lose your focus on that, Blake admits. “You have to have low single-digit Why didn’t we have a postcard together. They’re also smart you are in trouble as a brand. You constantly have comps to be able to leverage the business. We in there telling them what we do, a shared enough to build an executive to be looking for that next hot brand. The next hot have said it’s two-plus. Our full-line business did or better yet send an e-mail and understanding team with people they trust, trend. The minute you stop, you’re dead.” $7.7 billion in business last year. It’s still the bulk say we will make it really easy for from finance to legal. That exec- “We have common ambitions for the com- of the business. It’s been relatively flat for the last you and set up an appointment of what success utive team at the end of day pany,” says Erik. “We are competitive people. couple of years, so what’s getting more attention in the store. Maybe we will come runs the company. It’s not like We have high standards, but we are different and energy is e-commerce and off-price, which to your house — whatever. We looks like. It’s a the three mandate everything. people. We come at things from different per- percentage-wise are growing faster. What makes weren’t doing that because we long-term view The executive committee is all- spectives. The one thing all four of us appreciate that strategy work is having the best locations in were thinking about the business powerful. It makes decisions is that none of us has all the answers. That we are the best centers. Bricks-and-mortar is not going as two different channels.” and not a four- about growth, opening new better together. We appreciate each other’s point away. We are working really hard to make sure we Last year, Jamie and Erik stores, expanding the Rack. of view. We don’t have shared responsibilities. are making progress and gaining market share…We swapped jobs, with Jamie taking to-seven-year They all weigh in. It’s not like We all have our individual responsibilities. Not are investing a lot of money in bricks-and-mortar. on stores, and Erik oversee- view.” there is Terry Lundgren or every decision is made by three or four people. We are not tapping out with what’s possible with ing nordstrom.com. “I think I Burt Tansky setting the tone for It’s really our whole executive committee coming productivity, but we are not necessarily on the half-jokingly said to Erik, ‘Maybe Jamie Nordstrom the company.” together. Nordstrom is a public company. This same path of adding more stores,” unlike the rap- you and I ought to switch jobs “We have a shared under- isn’t a family-owned business. It’s not about us. idly expanding Rack chain. and that will send a message to standing of what success looks Our cio, our cfo — they’re not customer-facing “Maintaining and evolving the existing stores everybody,’” says Jamie. “I don’t think he thought like,” says Jamie. “It’s a long-term view and not people, but they talk about the customer all the helps in the multichannel strategy we have,” so I was joking. We started talking about what we a four-to-seven-year view, which is how most time and they understand the customer. They an HauteLook customer who bought some things could do with our teams, how we can get those companies look at it. We are making strategic understand the business and I think that helps.” online can return any items to stores “and then we two distinct teams to be one focused on customer decisions and investments to position this com- Are there more Nordstroms in the pipeline? are able to sell her something else. It creates more scenarios, as opposed to channel experiences.” pany for the next 50 years. We are not thinking of “There is no family succession plan,” says Erik, foot traffic,” Blake says. “That’s good service.” our tenure as leaders as anything significant in the who is 51, while Blake is 55, Pete is 53 and Jamie Asked if another store format was on the draw- very morning at 8 a.m. in conference company. The results are what matter. We believe is 42, though he stresses succession is a priority. ing boards, he says, “We have nothing up our room 6H at the Seattle headquarters, we are on the same page. The thing that those “One of the most important roles of the board is sleeve. We think we have a full plate through 2020. the four Nordstroms and the rest of the guys and I share is that we are more interested in succession, so we have long ongoing discussions So over time, I guess those are questions we will 10-member executive committee sit results than recognition. I know I feel that way. about succession. We are relatively young. We need to ask.” around the table that was moved from I know they do, too. The satisfaction of growing are not looking to head out to pasture anytime In the past, “We were making a mistake of look- Ethe downtown Seattle flagship that relocated this business, with our family connection, is the soon, but we absolutely have had long discus- ing at two different channels and trying to manage in 1998 to the former Frederick & Nelson site. ultimate satisfaction. This thing changes so fast. sions with our board about succession. We have each channel to their fullest potential; however, the Nordstrom is family-run — no one Nordstrom If you were sitting here three years ago and asked a very explicit process around all top positions to stuff that happens between the channels is where takes center stage, and the company is ruled by if Topshop would be in 100 of our stores, I would develop backfills for those roles and it’s our goal to the magic is,” says Jamie. “For example, we sell the executive committee. have said you are crazy, and so I think we have have two viable candidates for any given position Nordstrom Canada is seeing losses due to start-up costs of its first three tons of unhemmed pants on our Web site. When “Make no mistake, all of the Nordstroms are got to keep being curious. Keep an open mind. at any given time. stores, which are in Calgary, Ottawa pants arrive on someone’s doorstep, they can’t very, very actively involved and they all have Keep asking questions of our customers and It’s about what’s best for the company. and here, in Vancouver. wear them, because they’re unhemmed. What carved out their roles,” says a source close to the talking with people in the industry. When we What’s best for the shareholders. It’s not about were we doing about it? Nothing. But we are the company. “Because they grew up in the business were growing in the Eighties and in the Nineties, family at all.” ■

46 OCTOBER 2015, No. 2 WWD.COM Infographic by CARLOS MONTEIRO WWD.COM OCTOBER 2015, No. 2 47 CHANEL PHOTOGRAPH: STÉPHANE FEUGÈRE

PARIS THE SPRING COLLECTIONS in Paris wound down with designers transporting us to places both familiar and exotic — from Karl Lagerfeld’s On the Move chic ode to air travel at Chanel to Maria Grazia Chiuri and Pierpaolo Piccioli’s exquisite Africa-inspired realm at Valentino. 00 MONTH 00, 2015 WWD.COM PHOTOGRAPH BY BYLINE_NAME SAINT LAURENT LOUIS VUITTON PHOTOGRAPH: GIOVANNI GIANNONI PHOTOGRAPH: STÉPHANE FEUGÈRE IRIS VAN HERPEN PHOTOGRAPH: STÉPHANE FEUGÈRE

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Fashion. Beauty. Business.

OCT 2015 Think Tank No. 1 DONNA REVEALED Donna Karan’s new memoir is a literal tell-all, from the highs of her career to the lows of exiting her fashion house. When East Meets West: A New Paradigm Fashion Agenda p. 8 Paris Be Fashion In the International Retail Industry Right Forward By Brian Buchwald and Andrew Roth Now In a season of industrywide reflection, Stay up-to-date on Sacai’s Chitose Abe worked her distinctive hybrid constructions with a new soft touch. new analysis, trends, L.A.’S TIME Newsletter The City of Angels has been having a fashion moment for the last few years and designers think that this time, and vital information revenue growth resulting from Chinese consumers it’s here to stay. There is a major shift occurring in the international retail Fashion Agenda p. 12 in Western Europe and Japan as offsets to declining Industry News Alerts SOUVENIR’S HERE The souvenir jacket sales in domestic China. Left unsaid, however, was is a major trend on the industry in men’s wear, industry. Its genesis began long ago and was built on the and More interpreted in silk with a Fifties twist. that the benefits generated by the outbound Chi- M Agenda p. 34 nese consumer were more the result of external Subscribe today at needs of an aspirational and global-minded consumer. Yet, US $9.99 JAPAN ¥1500 CANADA $ 1 3 CHINA ¥80 SIGN UP TODAY! UK £ 8 HONG KONG HK100 factors than the result of corporate-level business EUROPE € 11 INDIA 800 wwd.com/subscriptions despite its prolonged ascension, only recently have a few decisions made in Europe or in the United States. Luxury retailers have been succeeding with the brands chosen to recognize it, and even fewer have chosen to Chinese retail tourist not as a result of proactive championing of the brands to the outbound con- tackle it head-on. However, with China’s economic concerns, sumer; but rather as a result of market conditions Editorial Calendar on the Mainland as well as in Hong Kong. Such the stock market free fall in August and the government’s market conditions include recent government-led crackdowns on corruption, rising political unrest ISSUE ISSUE ISSUE decision to devalue its currency, the Western world’s in Hong Kong, higher domestic prices than abroad, November 4 November 11 November 18 as well as a fear of product authenticity on the Watch & Jewelry Texiles, MAPIC, International Tradeshow Calendar, Stylemakers dependency on China has Mainland. These forces have enabled brands to Tribune Distribution Bal Harbour @ 50, Hot for the Holidays Women’s Collections profit from the Chinese retail tourist’s migration never been more apparent, from the local streets of Beijing and Shanghai to CLOSE 10.21 / MATERIALS 10.26 CLOSE 10.28 / MATERIALS 11.02 CLOSE 11.04 / MATERIALS 11.09 storefronts in Paris and Tokyo. and the shifting landscape While a weakened yuan will certainly affect of the retail industry can no international purchasing decisions, the currency’s devaluation has yet to hit a price point that would longer be ignored. render pricing arbitrage opportunities moot. As such, it is still in the Western retailer’s best inter- What is this shift? It is the increasing impor- ests to optimize the opportunities made available tance and purchasing power of the Chinese retail by the Chinese retail tourist. tourist in the global retail market. During the last In order to sustain these benefits, global year alone, there were approximately 100 million retailers must first accept change. Brands must outbound trips from China to international desti- recognize that their traditional consumer base is nations. This number dwarfs other nations and shifting, and as a result, so should the way they is further compounded by the fact that Chinese engage them. tourists spend more per capita during their travels Western brands must reassess how they consti- than any other tourist group. While some pundits tute themselves for this buyer. To date, virtually all cite China’s lagging growth rate and weakened global retailers use China-based consumer chan- yuan as reasons that the purchasing power of this Global retailers must first nels to do one thing: drive domestic consumption. group will wane, there are equally compelling They spend very little time and energy embracing arguments to the contrary. accept change. Brands and understanding the true Chinese consumer Nonetheless, Western brands relying on domes- journey — which is to build awareness of a brand, tic sales are right to worry. The rising Chinese mid- must recognize that formulate a perception of the brand, compare dle class will be less likely to travel, and therefore their traditional consumer the brand to its peers, and ultimately purchase more inclined to utilize domestic channels where the brand’s products in the most advantageous a weak yuan will make purchasing foreign goods base is shifting, and as a market to the buyer. more expensive and less attractive to a tradition- Given the uncertainties surrounding China’s ally price-sensitive consumer base. At the same result, so should the way economy and the long-term impact on Western time, while much of the country’s stock market they engage them. brands, both domestically and abroad, it is gains for the year retreated to pre-rally levels imperative that Western retailers invest in real- during August’s sell-off, the segment of the popu- time international consumer intelligence to better WWD places the world lation most important to the global retail market, understand where their consumers are traveling, the affluent traveling consumer, was least affected 2015, and factoring in consumer sentiment for what items they are most interested in purchasing, by the market shake-up. international purchasing, the immediate effect how they view trends in an international setting, of fashion at your fi ngertips. Although the Chinese accounted for nearly 45 of China’s economic spiral on Western retailers’ and who the main influencers are who are helping percent of all global luxury consumption in 2014 (a international outlets is not as clear-cut as their to shape their perspective. figure that has steadily increased year-over-year), Mainland counterparts. In other words, Western brands are better served amazingly, 75 to 80 percent of this spend was The impact of the Chinese retail tourist is preparing for the arrival of Chinese retail tourists than FOLLOW US ON: bought outside of Mainland China. This percent- far-reaching both in size and in relevancy. Recent bemoaning the presumed loss of their business. ■ age stands in stark contrast to approximately 60 quarterly earnings reports from Western retailers percent only four years ago. Given that there were are prime examples. Under pressure to mitigate Brian Buchwald is chief executive officer and an estimated 62 million outbound international investor fears of a weakening Chinese economy, cofounder of Bomoda, and Andrew Roth is Bomoda’s chief security officer. trips taken by the Chinese during the first half of corporate executives enthusiastically highlighted Manzati Andrea by Illustration

64 OCTOBER 2015, No. 2 WWD.COM For advertising inquiries, please contact Shannon Fitzgerald | 323-617-9094 | [email protected] WWD.COM OCTOBER 14, 2015 65 FINALE

Paris, Oct. 2, 2015 APPAREL & RETAIL The New CEO SUMMIT The Hills Are Alive LAST CHANCE Face of Fashion TO REGISTER! O To paraphrase Sir Francis Bacon: the mountain comes to Dior, Dior does not go to the mountain. In NEW YORK CITY the case of Raf Simons’ spring show for Christian Dior, the proverbial mountain was a man-made hill 27—28 OCTOBER 2015 built in the courtyard of the Louvre. Simons has been known to dazzle with his often floral-based sets, and this temporary urban bluff covered in 400,000 blue delphiniums was no wallflower. It required the hands of 100 people, working around the clock for three weeks to set it up for the show’s one-hour time slot. Then they got to work breaking it down over the course of 10 days. — JESSICA IREDALE

Tory Burch Maria Grazia Chiuri Brian Cornell TORY BURCH VALENTINO TARGET

Marvin Ellison Roger Farah John Jay J.C. PENNEY TORY BURCH FAST RETAILING

Kevin Mansell Pierpaolo Piccioli Jeff Yurcisin KOHL’S VALENTINO AMAZON.COM

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