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Ready-to-Wear/Textiles S NEWS: 5IFWFSEJDUPOi 4 FYBOEUIF$JUZ wQBHF 2 WWD, TUESDAY, MAY 18, 2010 WWD.COM Saks to Close Unit in Charleston By David Moin WWDTUESReady-to-Wear/TextilesDAY SAKS FIFTH AVENUE WILL CLOSE BY JULY ITS 33,000-SQUARE-FOOT STORE IN THE FASHION 225,000-square-foot Majestic Square development in Charleston, S.C., and hand over the lease to trendy fashion specialty retailer Forever 21. 6 Resort is off to a bold start, as Tomas Maier, creative It’s another sign that Saks is intent on weeding out weak units to focus resources on healthier, director of Bottega Veneta, presented a lineup of more productive stores, and that the L.A.-based, Korean-owned Forever 21 is eager to take over vibrant Ts, breezy dresses and exposed-seam skirts. locations. Aside from the Saks unit, Forever 21 has taken over former locations of Mervyns and Gottschalks, among other retailers. GENERAL In the Nineties, Saks went on an expansion spree, and in some cases picked the wrong loca- 1 The Estée Lauder Cos. Inc. has gone Hollywood, tions or sites that were too small. Saks earlier this year said it would close the men’s and women’s nabbing the photo-studio born makeup company units it operates in Portland, Ore., and a unit in San Diego in July. “Every time we make a store Smashbox Beauty Cosmetics Inc. closing, we think it through very carefully,” Stephen I. Sadove, chairman and chief executive of- 3 has rented 54 Main Street in East ficer of Saks Inc., told WWD. “We think through strategically the growth potential and the implica- Hampton, a 900-square-foot space that was tions of the store closing. People and jobs are affected.” formerly occupied by Brooks Brothers. Sadove declined to comment on whether any more stores would close this year. Long term, he said, “It’s not going to be a large number of stores….In the ordinary course of business, we evaluate the 8 Paige Adams-Geller, the former fit model who productivity, profitability and potential for each of our stores and may determine it is appropriate to founded Paige Premium Denim LLC in 2004, close a store from time to time.” has branched into leather sportswear. About 60 associates work in the Charleston store. They will either be offered transfer opportu- During the recession, many firms pulled back from nities or will receive severance packages. “Store-closing decisions are never easy,” Sadove said. S 12 campuses and put the brakes on their recruiting. Adding to the complications are lease agreements with landlords. Saks must either wait for a Some have slowly returned to hiring, but not lease to expire, transfer a lease to another retailer or make some other arrangement with a landlord to get out of a location. In addition to the 53 Saks Fifth Avenue stores, Saks operates 55 Off 5th outlet nearly at the robust levels of three years ago. stores and saks.com. Saks reports first-quarter results today. EYE The party Vanity Fair and Gucci held in Cannes on 16 Saturday night in honor of the 20th anniversary of Martin Scorsese’s Film Foundation brought out a Gap, Banana Republic to Enter Italy galaxy worth of stars. Classified Advertisements...... 15 TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS By Luisa Zargani and Ireland, while Banana Republic has units in [email protected], USING THE INDIVIDUAL’S NAME. Japan and the U.K. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2010 MILAN — Gap Inc. revealed plans to open the The two stores in Milan will be owned by Gap FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. first Gap and Banana Republic stores in Italy and will leverage the existing European human VOLUME 199, NO. 105. WWD (ISSN 0149–5380) is published daily (except for Saturdays, Sundays and holidays, with one additional issue in January, May, June, October and December, two additional issues in March, April, August, September and this year. resources and distribution infrastructure, said November, and three additional issues in February) by Fairchild Fashion Group, which is a division of Advance Magazine The stores will be located in central Milan, the company. Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé Nast: next to one another in Corso Vittorio Emanuele, Milan’s Gap store will cover three floors and S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive Vice President/COO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional one of the busiest shopping streets in the city. more than 84,000 square feet, and carry the Gap, mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services Tax Registration Next year, the company is expected to roll out GapKids, babyGap, GapBody and GapMaternity No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North stores in Rome and other Italian venues. collections. The new Banana Republic loca- Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Stephen Sunnucks, Gap Inc. president, tion will cover 57,607 square feet and carry the Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Europe and international franchise, said he brand’s ready-to-wear collections for men and Please give both new and old addresses as printed on most recent label. Subscribers: If the Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If was enthusiastic about entering Italy, “a new women, accessories and personal care products. during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with market, which is also one of the five main ones Gap stores total 3,100, and more than 170 of your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be for fashion in the world.” these are based in Europe. mailed within four weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 The company is expanding its presence glob- On Monday, the group also unveiled plans to or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Fairchild magazines on the ally and, in light of its strong customer base in launch an e-commerce site for Gap and Banana World Wide Web, visit www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened London and Paris, Sunnucks said he expected Republic in England that will serve nine other companies that offer products and services that we believe would interest our readers. If you do not want to receive these offers and/or information, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. the Gap brands to have similar resonance with European countries, including Italy. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, Italian consumers. The San Francisco-based re- In the fourth quarter ended Jan. 30, the re- UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND tailer reported net profits of $352 million, up TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART tailer first said it planned to expand into Italy WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED and China in February. Aside from operating 45 percent compared with the year-ago period. TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED stores for all divisions in the U.S. and Canada, Sales rose to $4.24 billion from $4.08 billion in MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Gap brand has stores in Japan, the U.K., France the same period the previous year. DAILY One of the enduring QUOTE “strengths of the Estée Aquascutum Taps Sykes as Design Director Lauder Cos. is our ability to identify brands By Nina Jones with unique positioning and nurture those We plan to expand LONDON — Aquascutum has brands to accelerate their momentum named Joanna Sykes design di- the“ men’s, women’s rector. and realize their full growth potential. Sykes, whose appointment and accessories is effective immediately, will ” work across the London-based — William Lauder, executive chairman of the Estee Lauder Cos., brand’s men’s, women’s and collections, and on the purchase of Smashbox Cosmetics. Page one accessories collections. She succeeds Graeme Fidler and there’s a big CORRECTION Michael Herz, who in March The Singapore brand All Dressed Up is looking to expand its retail resigned from their respec- opportunity to distribution in the U.S. through its existing exclusive distributor tive posts as head of men’s and Unisource. This was incorrect in a story on page 12, Monday. women’s wear. Sykes is a Central develop the strength Saint Martins alum who has de- of the trench. signed for Giorgio Armani and TODAY ON Alberta Ferretti in the past. She Joanna — Belinda” Earl, launched her own label, Sykes, Sykes which is known for its silk sepa- Aquascutum .COM rates, in 2007. CCI WWD GU

Belinda Earl, chief executive officer of Aquascutum, said alongside having “a fantastic eye for R O

F s More coverage from the Cannes Film detail and cut,” Sykes has “a great deal of respect for luxury fabrics, and a great understanding of the brand’s heritage. Festival, including the Gucci and Vanity Fair MAGE “I think the collection will really evolve,” said Earl. “We plan to expand the men’s, women’s and I

IRE parties and the “Leopard” screening accessories collections, and there’s a big opportunity to develop the strength of the trench.” /W s All the looks from Zac Posen’s fur collection Sykes will continue to produce her own label alongside her design role at Aquascutum. Her three- RELLI

U s Web exclusive: Coverage of season contract to design for Freda, the private label collection from London boutique Matches, T N ended with the fall 2010 season. Earl deemed it “too soon” for Aquascutum to show at London E Tom Pecheux’s new color cosmetics V Fashion Week in September, but said Sykes’ influence would be felt immediately at the company, IELE collection for Estée Lauder N and reflected fully in the label’s collections from next year. A

D s More images from the Y

Sykes added: “My aim is to continue to create beautiful, relevant, understated clothes and acces- B

O sories….I want to combine this with a respect for Aquascutum’s heritage [and] an appreciation of the T “Sex and the City 2” premiere O Juliette Binoche H groundbreaking fabrics the brand has pioneered.” P s Additional images from the Free Arts NYC event WWD, TUESDAY, MAY 18, 2010 3 WWD.COM MEMO PAD DON’T BREAK OUT THE BUBBLY JUST YET: Fashion magazines are still in recovery mode, but things are looking up: most titles posted an increase in ad pages during the fi rst half of 2010 — that is, compared with the dregs of 2009 and the numbers are still far off the good ole days of 2008. According to fi gures published by Media Industry Newsletter, the biggest winner in the fi rst half was People StyleWatch, the mass market shopping title from Time Inc., where ad pages rose 60 percent to 398 pages (but this is still a fraction of the pages of larger titles like Vogue, InStyle and Elle). Marie Claire also posted a strong fi rst half, up almost 22 percent to 584 pages; Harper’s Bazaar was up 17 percent to 755 pages, and Cosmopolitan and InStyle were both up about 10 percent, to 702 pages and 1,103 pages, respectively. Meanwhile, Vogue was up almost 8 percent to 987 pages and Allure posted a 7 percent rise during the fi rst half, to 536 pages. Elle reported a 5 percent rise in ad paging to 939 pages, and Lucky was up almost 2 percent to 516 pages. Not everything was rosy, though. Glamour posted a fl at fi rst half, with 688 pages, while those luxury dependents, Town & Country and W, represented the only two titles that continued to fall in advertising, with the former down more than 4 percent to 409 pages, and W A runway look by student Yumi Lee. sliding almost 14 percent to 423 pages. So the new editors in chiefs at both titles have their work cut out for them. — Amy Wicks

FROM 12 TO 11: Harper’s Bazaar’s ad pages may have been up in the fi rst half, but editor in chief Glenda Bailey and publisher Valerie Diane von Furstenberg Receives Salembier are still clearly looking for ways to cut costs. And they’ve gone for one of the easiest methods around: trim frequency. Bazaar will combine the June and July issues this year for the fi rst time, a Talley Lifetime Achievement Award spokeswoman confi rmed. The title’s “Runway Report” will be back again in September and sold separately on newsstands. — A.W. By Elizabeth Thurman and Isabel Toledo. Several former SCAD students paid tribute to DEMARCHELIER SNAPS SON’S GIRL: Patrick Demarchelier is keeping SAVANNAH, Ga. — Diane von Furstenberg shared the Talley and the award by designing 10 caftans in- it all in the family — sort of. On Monday, the photographer spotlight with students at the Savannah College of spired by the work of each recipient, and showcas- snapped son Victor’s girlfriend, model Caroline Trentini, near Grand Art and Design. ing them on male models in a runway show before Central Terminal for Express’ fall ad campaign. “She’s very good,” The designer received the André Leon Talley the main event. Demarchelier told WWD during a break from shooting. “And she’s Lifetime Achievement Award during the annual “I’m very moved by the tribute and I want all of a very nice girl.” (Well, what would you expect him to say?) So, student fashion show here on Saturday. those clothes in my room after the show,” laughed what does her boyfriend think of his dad’s photos of her? “He likes “André Leon Talley is someone I respect, Vogue’s Talley, who was draped in a graphic-print- them, I guess,” Trentini said with a laugh. The campaign, which admire and love unconditionally,” said von ed caftan, inspired by von Furstenberg. features Trentini along with fellow Brazilian model , hits Furstenberg, who is president of the Council of “For many years, I have started my days with a magazines in September. — Taylor Harris Fashion Designers of America. “We’ve shared some phone call from Diane,” Talley said. “She loves me very moving moments together and this is another without hesitation.…I am honored to present her SNAP HAPPY: Lou one of those moments.” with this award.” Doillon is adding A Lou Doillon photo at She also expressed admiration for SCAD presi- In conjunction with the show, Talley curated an “photographer” to Disneyland Paris. dent Paula Wallace, describing her as being among exhibition called “Diane von Furstenberg: Journey her repertoire. The “women with a vision.” of a Dress,” which opened at the Gutstein Gallery actress will present The ceremony at the Trustees Theater marked in Savannah on May 7 and will run until July. her photographs in the 10th anniversary of the award, whose previous Posen, Bryan Bradley, Angel Sanchez and an exhibition called winners include Marc Jacobs, , Catherine Malandrino served as mentors for the “United Generations” Karl Lagerfeld, Vera Wang, Zac Posen and Ruben 27 students whose 108 looks ran in the show, and at W gallery in Paris. all were on hand to offer last-minute en- Armed with two Lomos, couragement. Doillon wandered Malandrino, who fl ew to Savannah three around Disneyland in times to meet personally with students dur- Paris for several days ing the design stages, said she was “blown snapping away at people

away” by the collections and the resources and Disney characters DOILLON

available to students. that sauntered by. The LOU Michael Fink, dean of SCAD’s school exhibition runs from BY of fashion and former vice president and May 27 to July 27. women’s fashion director at Saks Fifth PHOTO Avenue, said, “The entire process has been a real lesson for me in how to let go of some of that control and really let the students shine.” Blow Archive Headed to Auction Next up for the college is Thursday By Samantha Conti night’s launch of “Fashion Seen,” a show in Atlanta that will feature looks by 20 senior LONDON — Isabella Blow’s archive of Alexander McQueen de- Diane von Furstenberg and André Leon Tally. fashion students at SCAD’s sister campus. signs and Philip Treacy millinery creations will go under the hammer in September at Christie’s South Kensington, the auc- tion house said Monday. The sale, to be held Sept. 15, will be accompanied by a coffee Balenciaga Rents Shop in Hamptons table tribute book to be published in September by Thames and Hudson. By Sharon Edelson Other brokers said there were probably more A Christie’s spokeswoman said Blow’s sisters are selling the vacancies at this time last year and that retail- collection to settle debts on her estate. BALENCIAGA IS GETTING IN ON THE HAMPTONS ers seem to be taking multiyear leases or year- Among the pieces to be auctioned are also pieces by John retail scene. The Parisian luxury brand has rented round leases rather than just renting for the Galliano and Manolo Blahnik. 54 Main Street in East Hampton, a 900-square- summer months. The sale will include 50 Treacy foot space that was formerly occupied by Brooks Anything would be an improvement over last hats and 90 styles by McQueen, Brothers. A Balenciaga employee said the company summer, when retail sales were down 35 percent Isabella whose graduate collection Blow will open the space, but declined further comment. in the area, according to Zwick. Blow famously purchased — and paid Other high-end brands have retreated from the “Housing rentals are stronger this year,” he said. for in regular installments. trendy summer beach locale. Gucci, which opened “A lot of the good properties went early, but you can “It is sure to be a landmark an East Hampton store in 2006, shuttered its 46 still get rentals. People are still cautious, but they auction, providing as it will a fas- Main Street location last winter. have more money this year and feel more comfort- cinating insight and perspective It remains to be seen whether the appetite for able about putting money down on rentals.” on this great champion of young high spending has returned to East Hampton con- Supply outstripped demand in terms of retail designers and avant-garde fash- sumers. For example, Balenciaga’s giant Arena space as well. Some landlords left “for rent” signs ion,” a Christie’s statement said. covered folder handbag is $1,925 and its black up in store windows even after leases were signed Blow, who committed suicide biker jacket is $2,595. “to get names for next year,” Zwick said. “A number in May 2007 after a long battle with Retail brokers in East Hampton said there’s of retailers couldn’t get space. People are shocked depression, is also the subject of more demand for space this year, but rents are still and say, ‘What do you mean there’s no space avail- two more books to be published not back to their prerecession levels of about $200 able?’ We have a healthier situation than last later this year. One is being penned a square foot. Rather, Main Street is fetching about year.” by her widower, Delmar Blow, with $125 a square foot, while Newtown Lane is getting Zwick said he’s working with two major retail- Tom Sykes, and the other is by around $100 a square foot, said Hal Zwick, a retail ers on leases for next year. “They want to try to the London-based fashion writer broker at Devlin McNiff in East Hampton. have the leases done by the fall,” he said. Lauren Goldstein Crowe. 4 WWD, TUESDAY, MAY 18, 2010 WWD.COM

Kim Cattrall in a Jean Paul Gaultier dress, Balizza wrap, For more images of the Horst hat and Ralph Lauren bag; Kristin Davis in an premiere, see WWD.com. Alexander Wang top, Patricia Field caftan, Zac Posen pants, Bill Blass belt and Vivienne Westwood hat; Sarah Jessica Parker in a Zara blouse, Dior bustier, Ralph Lauren pants and Philip Treacy hat; Cynthia Nixon in an Hermès dress and hat, Missoni pants and Roberto Cavalli belt.

Dress by Lanvin. ROS. B

LANKENHORN/WARNER B

Shirt and skort by CRAIG They’re Baaack Alexander BY Wang. PHOTOS

BETWEEN THE TRAILERS, THE TEASERS, AND THE The entire scenario, from the fleet of white Maybachs by “SATC” standards, a little more tame — wayward endless “Access Hollywood” countdowns, the only thing that chauffeur the girls around (one for each) to the ho- headgear notwithstanding — too. There are silk sheath audiences won’t already know about “Sex and the City tel’s personal butler system, is devised to flaunt offensive dresses, solid colors and T-shirts thrown on over spar- 2” when it hits theaters May 27 are a few particulars of wealth. If the film is fashion porn, as The New York Times kly skirts. Whether that was meant as a deliberate re- the plotline, which, as everyone knows, includes a big suggested last time around, this would be the money shot. flection of the new economy, or the fact that midway gay wedding of MGM studio proportions (Liza!) and a Every meal, every nap, every cocktail is an excuse for a through production Sarah Jessica Parker was installed Middle Eastern getaway fit for a sultan during which — wardrobe change. One desert lunch scene involves three as president and chief creative officer of Halston, a no surprises here — Carrie runs into Aidan. new outfits per character — if ever there were an excuse label she appears in about six times by Field’s estima- There hasn’t been this much hoopla surrounding a to put that harem pant and jumpsuit trend to work. tion, is anyone’s guess. There’s the opening white dress, movie since, well, “SATC” two years back, when there Costumer Patricia Field wasted no chance to betur- and at least two versions, long and short, of the pleated were still waiting lists for Birkin bags. In the meantime, ban and bejewel the ladies to cartoonish extremes, and flounced dress Parker wore just weeks ago to the the New York luxe life has been chastened. But a sequel which is by now par for the course. And King seized Costume Institute gala at the Met. in which Carrie, the ultimate shoe monger, is shod by every opportunity to play on the cultural divides (and Parker didn’t comment on how her new post at Payless? Downer. unifiers) between the way American and Middle Eastern Halston influenced her character’s wardrobe, but “I knew [‘Sex and the City 2’] had to be a different women are expected to dress. In his world, the women Field’s relationship with the label goes way back. When vibe,” said the film’s writer-director-producer Michael of Abu Dhabi wear Vuitton under their burkas. it came to “Sex and the City 2,” “I was just personally Patrick King at a press conference held Sunday at While the free vacation provided an escapist excuse, a little bit tired of all of these exaggerated, artificial Bergdorf Goodman’s shoe salon. “I sat down to write in the New York story was adjusted, if slightly, for today’s shapes on clothing,” says Field. “Shoulders pointed out what was the beginning of an economic downturn, and reality. For example, Carrie and her husband, Mr. Big, to there and skirts that look ballooned. I was just feeling we’re still in it. Like in the Great Depression, I thought have downsized from the Fifth Avenue penthouse fea- — desiring — like, chic simplicity. And so I had turned Hollywood should take people on a big vacation that tured in the first movie to a more manageable outfit “a to Halston.” maybe they couldn’t afford themselves. I wanted to little more down to earth.…12 floors, to be exact,” al- Lest things get too spare and sophisticated, Field make it a big, extravagant vacation.” beit one that came with egregious walk-in closet scapes found a place for a little tacky nostalgia from the good So King wrote in a Middle Eastern sheik-hotelier, who (clothes provided by Net-a-porter) to rival the shame- ole HBO days: A John Galliano for Christian Dior news- offers Samantha, plus three, an all-expenses-paid trip less ab and crotch shots of the World Cup players who paper dress from season three. to Abu Dhabi, since “Dubai is dead,” as the sheik says. show up in Abu Dhabi. And the Stateside fashion is, — Jessica Iredale, with contributions from Taylor Harris FASHION SCOOPS FRENCH TOUCH: Yves Saint Laurent Stefano — to the Hamptons that is. On May hanging from one completed wall. “The idea with banking headquarters. The exhibition, which is the latest French brand to take its Pilati 27, Kors will be opening a store at Nike is to create an artistic space and a clubhouse showcases the brand’s iconic bags and wedge cruise collection on the road — and 30 Main Street in Southampton. where art can be featured,” said de Cárdenas, who shoes, will lead up to a fall fashion show on June to put it on a runway. YSL designer The unit, with 1,050 square feet was inspired by soccer fields when designing the 11. The collaboration continues with a limited Stefano Pilati is heading to New of selling space, will offer a mix of space, and created removable, magnetic shelving edition charity line of small leather goods that also York for an intimate showing of his merch targeted to the Hamptons for the store so exhibits — such as various teams’ will bear the Bank of China logo. Proceeds will go pre-spring designs at the Consulate clientele and culled from the jerseys, for instance — as well as seating areas to local Hong Kong charity Community Chest. General of France on June 3. The designer’s Collection, Kors Michael can be moved around. The centerpiece of the small-scale show is to be held in one Kors and Michael Michael Kors lines. party was a short film, “Everything Is Practice,” WHERE EVERY CLIQUE IS A FASHION CLIQUE: The of the consulate’s silk-walled salons. directed by Jake Sumner — son of Trudie Styler High School of Fashion Industries will hold its PAGING MICKEY MOUSE: MAC and the aforementioned rock star, who got the annual scholarship fund-raiser on Wednesday. CITY SWAPS: Italy’s Camera della Cosmetics is teaming up with party quiet as the film unspooled on a large wall The event, which is expected to raise $25,000 Moda is still fine-tuning its schedule for men’s Disney to create a limited edition color collection, — featuring Spike Lee assistant coaching his son’s for the school, will honor designer and HMX fashion week in Milan, and, while a first draft intended to launch globally in late September in soccer team. “It’s one of my first big projects,” Group creative director Joseph Abboud this year. shows no major adjustments to the head count, all MAC locations. The products will feature four admitted Sumner, who, when it comes to his The students will also produce a fashion show a few houses will forgo the runway in June. Disney characters, on which the brand is keeping native U.K. teams, cheers for Chelsea. “I’m not during the evening, which is held at the school on Alexander McQueen, Les Hommes, Missoni and mum at the moment — although with a collection like a huge football fan,” Sumner said, “but the West 24th street in Manhattan. Past honorees for Moschino are opting for presentations, while CP name of Venomous Villains, it is assumed that film was my idea, to kind of show Spike and these the fund-raiser, chaired this year by IMG veteran Company will show its collection solely at the we’re not talking Donald Duck and Minnie Mouse kids, and show what it means to be a team.” Christina Neault, include Tim Gunn and Ruth Finley. Pitti Uomo trade fair, which kicks off in Florence here. Lipstick, powder, lip gloss and blush shades The Stadium pop-ups also are opening in Berlin, on June 15. The trade show’s special guest of will be sold, ranging in price from $12 to $29.50. London, Paris, Tokyo and Milan, and will feature NEW RECRUIT: Paris-based designer Bouchra honor, Jil Sander, also will present its collection interactive games, the Nike Sportswear product Jarrar has been invited to join the official in the Tuscan capital this season on June 17. GOAL CORNER: “Silencio!” Sting shouted over based on the game calendar — up first, team kits couture calendar. Jarrar, who founded her Trading places, Pitti Uomo stalwart Corneliani the throngs of soccer enthusiasts and hipsters for Brazil — as well as basement lockers for local signature couture label in January and showed will make its Milan runway debut, as will Turkish gathered Friday evening at the new Nike Stadium sports teams, including the NYC BridgeRunners. structured, two-toned pieces, said she would designer Umit Benan. Calvin Klein also returns to store on the Bowery. Though the pop-up shop, “continue with the same concept for the next Italy’s fashion capital after last season’s hiatus. which celebrates the 2010 World Cup, won’t ALL ABOUT CHINA: Eager to emphasise the collection.” Jarrar has also been nominated for Finally, Ermenegildo Zegna and Z Zegna will officially open until Thursday, the Raphael de importance of the Chinese market, Salvatore the ANDAM award, to be presented June 28. present its collections simultaneously. Cárdenas-designed space was only partially Ferragamo launched a partnership with Bank Prior to launching her brand, Jarrar worked at completed as guests such as Jen Brill and Justin of China Monday with a four-week “Living Art Balenciaga for almost a decade and was the BEACH BOUND: Michael Kors is heading out East Theroux made their way past the soccer jerseys Exhibition” in the lobby of the I.M. Pei-designed former couture director at Christian Lacroix.

6 WWD, TUESDAY, MAY 18, 2010 WWD.COM

Tomas Maier in Bottega Veneta’s New York showroom.

Geometry Lesson

“ARCHITECTURAL.” “GRAPHIC.” “CLEAN lines.” Tomas Maier used those words in reference to his cruise collection for Bottega Veneta, but he might as easily have been speaking of another just-completed project, For more, see his new design studio that occupies 4,000 WWD.com. square feet in the Fuller Building on 57th Street. All stark white and sanded glass, the digs are a minimalist’s dream; there’s not even an inspiration board in sight. “The [cruise] collection is finished,” Maier says. “The boards will come for spring.” Yet the decor’s austerity feels less harsh than calm — and serviceable, its practicality rooted in a multitude of movable parts. “I wanted a space that could be completely modified,” Maier explains. “All these walls, they all slide,” either up and down or side- to-side. One area sections off into a satellite office for design staff visiting from Milan; elsewhere, sliding walls reveal floor-to- ceiling mirrors making for an unobstructed fitting room. Such versatility is essential to Maier, who designs Bottega Veneta from three outposts — Milan, New York, and, less frequently, his home base in Florida — where he works out of an office within the headquarters of his eponymous firm. While most of Maier’s early design work for Bottega happens in Milan, fittings occur there and in New York, a reality that has made him a too-frequent trans-Atlantic commuter. He expects this new space, complete with state-of-the-art video conferencing equipment (hidden when not in use), to substantially reduce his number of trips. Bottega’s sales office and showroom remain above the house’s Fifth Avenue store, also the previous location of the studio. “There is nothing commercial going on here. This is only creative,” Maier says, adding that part of the commercial office will relocate to the Gucci tower. As for whether

IANNACCONE he considered transferring his studio there, he offers an emphatic “no.” “That belongs to somebody else,” he says. “I wanted this THOMAS space. It’s very clean, so when you bring the BY garment in, the garment is the king.”

MAIER For cruise, architectural shapes reign, “a little Bauhaus, squared and then collapsing,” the designer notes. Throughout,

ERICKSEN; he incorporates vibrant tones played Two cruise against black and white. There are obvious KYLE

BY dresses, surf references, but he says it’s not about shown hanging 10. Case in point: bold-bicolor with house pieces which, though reminiscent of scuba PHOTOS footwear gear, are inspired, Maier explains, by “the and bags. Romanian girls — you know, the gymnasts.” FASHION — Bridget Foley WWD, TUESDAY, MAY 18, 2010 7 WWD.COM BEAUTY BEAT Estée Lauder to Purchase Smashbox 1998, credited Dean Factor’s vision for taking a chance on television home shopping. “He comes across as casual California. He is really a very bright busi- ness guy,” said Burke. “He was willing to listen to where we were going and what we were doing, and it made sense to him, and he clearly charted his own path. To be fair, it was a time when there was a lot of makeup artist brands emerging and the fi eld got cluttered quickly, perhaps that was part of the attraction.” Smashbox’s move to QVC was aus- picious and the home shopping chan- nel has been an important platform for the brand’s products. Halo Hydrating Perfecting Powder, which boasts the ben- efi ts of skin care ingredients, is a case in point. QVC put the product, priced at roughly $72, on its Web site three months before it was presented on air and had a year-long exclusive. To date, more than 144,000 units have been ordered via QVC. Currently, Lauder sells Bobbi Brown, Origins, Clinique and the hair care line Ojon on QVC. At this point, none of the Lauder brands are sold on QVC’s main rival, HSN. Smashbox is best known for cam- era-friendly products such as Photo Finish primer and Photo Op Under Eye Brightener. Freda said its positioning as a photo-studio inspired, Hollywood brand gives Smashbox a unique position- ing within the Lauder brand portfolio, which includes makeup artist-created lines MAC Cosmetics, with its strong fash- ion bent, and Bobbi Brown, which is tai- lored for everyday women. Also, because Davis Factor, Budd Taylor, John Demsey, Smashbox largely lives in different retail Fabrizio Freda and Dean Factor. channels from MAC and Bobbi Brown, Freda said he does not anticipate the Continued from page one brand to cannibalize sales of the other The purchase price was not disclosed, but sources estimated it was between $200 two or the remaining 24 brands in the group’s portfolio. million and $300 million. WWD fi rst reported on April 23 that Lauder may have been John Demsey, Lauder group president responsible for the MAC, Bobbi Brown, in talks to buy Smashbox. Estée Lauder, Tom Ford, Prescriptives, Jo Malone and La Mer brands, will oversee “We like the brand and its photo-studio inspired, Hollywood positioning,” Lauder’s Smashbox after the close of the deal. “This is a meeting of like-minded organiza- president and chief executive offi cer Fabrizio Freda told WWD during a call from Los tions,” he said, noting they are both family oriented and focused on fi eld service and Angeles Monday morning. “Smashbox operates in a selling environment that is of big selective distribution. Demsey said, “We come here with tremendous respect for what interest to us, specialty retail, where we want to continue to grow.” [Smashbox] has accomplished. Smashbox offers a fresh new way of looking at spe- North American department stores account for 30 percent of Lauder’s total rev- cialty retail and at video and creative production.” enue of $7.3 billion in fi scal 2009. William Lauder, executive chairman of Lauder, stated, “One of the enduring Freda added that Smashbox Studios, complete with its digital capabilities, will bene- strengths of the Estée Lauder Cos. is our ability to identify brands with unique posi- fi t the entire Lauder company. The deal marks the fi rst acquisition since Freda assumed tioning and nurture those brands to accelerate their momentum and realize their full the ceo post in July. Leonard Lauder, chairman emeritus of the company, could not be growth potential. The addition of Smashbox to our portfolio continues this 64-year reached for comment, but it is known he is a strong supporter of the acquisition. legacy. We expect that with our strong cultural synergies and shared appreciation for Smashbox generates about $80 million in wholesale revenue and family heritage, this will be a wonderful union.” $140 million in retail sales, according to a source with knowl- At fi rst glance, Smashbox doesn’t seem to neatly fi t into Lauder’s strategic pri- edge of the company’s fi nances. In 2006, private-equity fi rm orities — as outlined by Freda TSG Consumer Partners acquired a minority, noncontrol- earlier this year — of skin care ling stake in Smashbox. and Asia. But last month, Freda “We and the Factors are pleased that the brand will We’ve grown to a clarifi ed to WWD, “Skin care and now reside within the Lauder company,” said Hadley “ Asia are our priorities, but we Mullin, a managing director at TSG. “We are confi dent point where we feel also will look more broadly.” He that Lauder will be a tremendous steward.” emphasized, “We’ve always said Mullin said TSG and Smashbox have been in seri- that the Lauder [mergers and acquisitions] are ous talks with Lauder about a potential acquisition for part of our strategy,” adding the several months, and that the brand has fi elded inqui- company can take us company will pursue opportuni- ries from interested buyers for a number of years. ties that widen its reach by cat- About a year ago, Smashbox tapped Deutsche Bank to the next level. egory, distribution channel and to act as a fi nancial adviser as it considered strategic in geographic scope. — Dean” Factor, alternatives, including the sale of the company. As one analyst declared, Smashbox’s prowess in fast-growing retail channels, Smashbox Beauty Cosmetics Inc. “Lauder can’t ignore open sell particularly TV shopping, and its presence in open-sell store anymore.” formats, including Ulta, Sephora and Macy’s Impulse Beauty The news of Lauder’s acquisition of Smashbox did not shock retailers, although some concept, offer Lauder a stronger presence in alternative channels, expressed modest surprise. They are curious to see how Lauder will grow the brand. particularly as shoppers continue to shift away from department stores. Robin Coe-Hutshing, founder and creative director of Studio BeautyMix, which It also rounds out Lauder’s holding of venerable makeup artistry brands, which in- houses a Smashbox Pro Studio, said, “I knew Lauder would never be going the indie clude MAC Cosmetics and Bobbi Brown. route again with smaller brands. I don’t see them nurturing small brands to the fi nish Smashbox is sold throughout North America as well as some 60 countries world- line any more.” She added, “It has to be something that can really go to the distance wide, said Dean Factor. “We’ve grown to a point where we feel that the Lauder compa- in the Lauder scheme of bigness and this certainly fi ts the bill. I think it complements ny can take us to the next level,” said Factor. Smashbox will continue to operate out of their other brands. It is not particularly redundant in terms of the mission statement its Los Angeles offi ce, and Dean Factor, co-founder and ceo; Davis Factor, co-founder, of the brand.” chief creative offi cer and celebrity photographer, and Budd Taylor, president, are Burke of QVC gave the union his blessing, saying, “We love Smashbox. We are so expected to play key roles in the integration and the brand’s future plans. grateful to them for their commitment to us for all of these years, and we are very Caris & Co. analyst Linda Bolton Weiser said, “[Lauder] has a history of taking much in awe of the Lauder corporation and anxious to be a greater partner to them. something relatively small and expanding sales.” She added, “They’ve made MAC and It is good thing as far as we are concerned.” Bobbi Brown hugely successful.” Bolton Weiser said Smashbox is Lauder’s largest As mergers and acquisition activity has begun to thaw this spring, multichannel acquisition of a brand that is dominant outside of department stores. beauty brands have been in high demand. Earlier this year, Shiseido Co. Ltd. acquired The deal broadens Lauder’s presence on the airwaves of the largest TV retailer, mineral makeup company Bare Escentuals Inc. for $1.7 billion, giving the Japanese QVC, where Smashbox consistently ranks among the top 10 beauty brands. Smashbox cosmetics giant a stronger foothold across all retail channels, TV shopping and open also is sold on QVC in the U.K. and Germany. sell included. Allen Burke, director of merchandising at QVC, where Smashbox premiered in — With contributions from Rachel Brown 8 WWD, TUESDAY, MAY 18, 2010 WWD.COM Miss Jackson’s Marks 100 Paige Denim Entering New Categories By Sharon Edelson By Holly Haber MISS JACKSON’S IS STILL TURNING HEADS AT 100. A leather The grande dame of Tulsa, Okla., luxury retailing was THERE’S MORE TO PAIGE THAN DENIM. look from founded by Nelle Jackson in 1910 as a small lingerie shop. Paige Adams-Geller, the former fit model who found- Paige. It expanded in 1928 when it moved to the Philtower, the ed Paige Premium Denim LLC in 2004, has branched highest building in Tulsa at the time. The store has re- into leather sportswear and is working on collabora- mained a key resource for Tulsa’s well-heeled women. tions to produce shoes and bags. Not even the Great Depression nor Jackson’s retirement “One of the things that has been growing in the in the Fifties could stop Miss Jackson’s. Paige brand is nondenim categories, like ponte and After Jackson sold the store in 1964 to the Vandever Co., twill,” Adams-Geller explained, adding nondenim now it was relocated to Utica Square, an open-air mall in the city. accounts for 20 percent of the business. Upon Jackson’s death in 1966, the store was sold again to local “Leather has always been a passion of mine,” businessman William F. Fisher Sr. she said. “I love shoes, bags, purses, the beauty of it. Miss Jackson’s in 2001 was purchased by Helmerich & There is so much versatility and texture and color and Payne, a drilling company that owns Utica Square. Walter weights. Leather is probably the most fascinating ma- Helmerich 3rd, the 87-year-old chairman, oversees Miss terial to work with other than denim because there are Jackson’s with tender loving care. “We invested $1.5 mil- so many things you can do with it.” lion in updating the store,” he said. “We worked with a Paige will begin shipping five styles of lambskin decorator who does all the Neiman Marcus stores. He did jackets and a pegged pant in July. They wholesale from a complete renovation.” $200 to $325. Miss Jackson’s occupies 35,000 square feet at Utica “One of my favorite uniforms has always been a Square, where other retailers include Saks Fifth Avenue, leather jacket with a pair of jeans,” Adams-Geller said. Talbot’s, Jos. A. Bank and Pendleton. Although the store “You can’t go wrong.” bears little physical resemblance to the original lingerie Leather shorts, skirts and shearling are on tap for shop, Helmerich said Miss Jackson’s service culture is holiday. The leather will be labeled Paige Denim, based on the founder’s philosophy. and the company is gradually dropping the word “It’s a store where salespeople call and say, ‘Come in, “Premium” from its jeans labels as well. I have something for you,’” said Helmerich. “Associates Adams-Geller’s favorite jacket is the Northwick, a send customers handwritten notes. We have in-house stonewashed gray ombré hip-length style with an asym- alterations, free delivery within Tulsa and free gift metric zipper, peplum back and removable sleeves and wrapping.” collar. She has also introduced a heavier black varsity “Some sales jacket with ribbed cuffs, two motorcycle styles and a associates have feminine bolero with three-quarter sleeves trimmed been here over 45 with eyelet lace. Colors are cognac, black and gray. years,” said Judy Adams-Geller dabbled in leather last year with two White, general jackets and a pair of pants that retailed from $600 to portunity for a testing ground,” she said. manager. “They $900 in her Black Label line. Though she discontinued The East is more polished and prefers clean, dark cultivate relation- the pricy label, the leather pieces did well at her three washes and skinny legs, while the West goes for casual ships with several Paige stores and other doors, which prompted her to washes and silhouettes, Adams-Geller observed. The generations of the expand the category. nation’s midsection likes boot-cuts and pocket treat- same family. We Two of the company’s stores opened as the econo- ments; the South wants lightweight fabric. still try to follow my was plunging — a Las Vegas shop at The Venetian Adams-Geller, who owns the Culver City, Calif., Nelle Jackson’s bowed in October 2008, and a unit in New York’s company with her husband, Michael Geller, and part- footsteps and offer the best service we can. We offer shop- Meatpacking District opened two months later. But she ner, Michael Henschel, declined to reveal revenue. pers a beverage in the dressing room and send things to cus- says she doesn’t regret it. The brand is distributed in 2,000 doors in the U.S. tomers for approval.” “It has enhanced the brand, and it gives me an op- and Europe. Miss Jackson’s draws shoppers from Tulsa’s wealthi- est neighborhoods, including Forest Hills, Philbrook and South Tulsa. “Thirty years ago, Tulsa was the oil capi- tal of the world,” said Helmerich. “Then it all moved to Houston. Half of the money here is still oil money. A lot Aéropostale’s Geiger Sees Spike in Pay of the independent investors and owners who died left foundations. Cattle is still a big business in Tulsa.” JULIAN GEIGER’S FINAL YEAR AS CHIEF EXECU- last year, former president and ceo David Griesemer’s Miss Jackson’s had sales of $6 million last year, said tive officer of Aéropostale Inc. paid off handsomely. compensation dropped 41.7 percent in 2009 to $1.4 mil- Helmerich. Sales at both Saks and Miss Jackson’s were Geiger, who retired as ceo at the end of the fiscal lion from $2.4 million. He resigned in September and down in 2009, by 14 percent and 12 percent, respectively, year but continues as chairman of the teen specialty was succeeded as ceo by Dennis Pence, who remained but Helmerich sees signs of improvement this year. retailer, pulled in reported compensation of $13.5 chairman. Pence, co-founder of Coldwater Creek with Miss Jackson’s main concern is its aging customer base. million last year, 87.2 percent above the $7.2 million two previous stints as its ceo, earned $1 last year, in “All of the wealthiest women in Tulsa shopped at Miss reported for fiscal 2008. The majority of his pay came compliance with his own request, according to the Jackson’s, but now they’re dying off,” said Helmerich. “We’ve from $8.2 million in other compensation paid in cash firm’s proxy. started to bring younger people in.” to replace annual equity awards and increases in re- Griesemer’s salary last year dropped 39.6 percent The retailer is turning to the daughters and grand- tirement benefits. to $437,865, from $725,000. He earned $594,605 in stock daughters of longtime customers. While St. John and Geiger’s salary and nonequity bonus were un- and option awards, a 57.8 percent decline from 2008’s Eskandar, two of Miss Jackson’s best-selling collections, changed at $1 million and $3 million, respectively, and, awards, which were valued at $1.4 million. appeal to a mature woman, the store has been adding as in 2008, he received no stock or option awards. The Pence, who is listed as the owner of 14.3 percent of younger lines. “We have Kevin,” White said. “We have change in pension value and nonqualified deferred the company’s shares in the proxy, ceased receiving Alice & Olivia, Free People and Joe’s Jeans. We carry a compensation earnings fell 60 percent to $1.3 million retirement benefits from the firm when he returned to little bit of everything. We try to target a wide range of from $3.2 million. Excluding that accounting item, his the ceo post, the proxy said. customers, women from their mid-30s to more mature pay more than tripled to $12.2 million from $4 million. The total compensation of Georgia Shonk Simmons, women, but we also have some younger girls who come to Mindy Meads and Thomas Johnson, who now serve Coldwater’s president and chief merchandising officer, do their debutante ball shopping.” as Aéropostale’s co-ceo’s, earned $4.8 million and $4.1 dropped 29.4 percent last year to $1.2 million from $1.7 In addition to fashion, Miss Jackson’s sells fine jew- million, respectively, 2.5 percent and 69.2 percent high- million. Her salary slid 15 percent to $510,000, from elry, cosmetics, fragrance, china, chocolate and gifts. er than the previous year. $600,000, while her stock and options declined 58 per- Helmerich knows that in this economy, the definition of The New York-based retailer’s net income grew 53.6 cent to $375,540, from $893,400 a year earlier. luxury can be malleable. “The jewelry department is not percent to $229.5 million last year as sales advanced Coldwater’s net loss tallied $56.1 million last year a big profit center like it was,” he said. “There isn’t a mar- 18.3 percent to $2.23 billion. as sales ticked up 1.4 percent to $1.04 billion. ket for fine jewelry, so we’ve brought in fashion jewelry.” At Coldwater Creek Inc., which saw losses double — Arnold J. Karr and Alexandra Steigrad

the team here…when you do something like [the sale to Star], having a cfo in position is really wise and pru- Efthimios P. Sotos Heads to J Brand dent,” said Jeff Rudes, ceo and founder of J Brand. Rudes said J Brand, which launched five years ago By Khanh T.L. Tran in excess of $50 million. Established a year ago, Star and has 102 employees, is on track to grow sales by as Avenue is a partnership between Star’s management, much as 60 percent to $85 million this year through re- LOS ANGELES — Former Jones Apparel Group Inc. chief private equity firm Irving Place Capital and CAA. tailers such as Barneys New York, Saks Fifth Avenue, financial officer Efthimios P. Sotos has joined premium As part of the deal, Peter Boneparth, former Jones Bloomingdale’s, Nordstrom and Intermix. denim company J Brand as finance chief. Apparel Group chief executive officer and a senior As for joining True Religion, Seven For All It is the first major hire by Los Angeles-based J adviser for Irving Place Capital, joined J Brand as Mankind and other premium denim rivals that have Brand since the firm was acquired three months ago chairman. opened freestanding shops, Rudes said a J Brand by investors, including talent powerhouse Creative Sotos, 42, worked with Boneparth at Jones before store is in the works to open before 2012. The com- Artists Agency. Sotos will also be an executive vice Sotos left to join teen retailer Metropark USA as its pany operates an outlet store near its headquarters president, overseeing sales growth and helping man- chief operating and financial officer in February 2008. in Los Angeles. age operations with J Brand chief operating officer Sotos’ prior retail experience included tenures as chief “We’re here to support our wholesale business, our Albert Schami. operating officer and cfo of BCBG Max Azria Group and majors business and our specialty store business and Star Avenue Capital LLC said in February it acquired assistant treasurer of Nine West Group. not necessarily put stores next to them and compete a majority interest in J Brand in a deal said to be valued Sotos is “incredibly smart and he really fits with with them,” Rudes said. “There’s no rush to do it.” WE’RE BACK

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For more information on advertising in Menswear, contact Marc Berger, publisher, at 212 630-4831, or your Menswear salesperson. 10 WWD, TUESDAY, MAY 18, 2010 WWD.COM Ready-to-Wear Report

Zac Posen’s three-fox Edelkoort Sees Fashion Taking Flight patchwork jacket. By Rosemary Feitelberg More complex were what she called “Intelligent Owls,” “so important because he is the image of The TREND UNION’S LI EDELKOORT RECENTLY Nerd Generation, sitting all night in front of a [com- delivered her “Taking Flight” presentation for fall- puter] screen looking for predators and wearing winter 2011-2012 with a sulphur-crested cockatoo heavy-rimmed glasses.” She continued, “Recently, perched on her shoulder. we went to fashion parties in New York and in While the act may have seemed a bit bird- Paris, and everyone had these heavy-framed glass- brained, the creature epitomized Edelkoort’s fore- es. Nobody is older than 30 so they don’t need them cast, which is awash with bird metaphors — 16 to but everybody is wearing them. It was fantastic to be exact. And her explanation and visually arrest- look at. And they were all dressed in very, very bor- ing images swayed a 400-plus crowd at New York ing clothes. The idea is you look super intellectual University last week. Now that the recession is eas- — no color, no frugality, it’s just very serious — lots ing up, fashion and design are about to take fl ight, of brown, gray so you’re invisible.” leading to new colors, more texture and a higher “Cocktail Birds,” like the live one that rested on plane of creativity, she believes. Edelkoort’s right shoulder, represented caged birds and signaled a revival of Jazz Age cocktail fashions. “It’s all about beautiful fl apper girls — a real reviv- al to the Jazz Age — twittering until they die, danc- ing all night long and voluntarily living behind gold bars,” she said. “Birds of Paradise,” meanwhile, exemplifi ed a return to more exotic and iridescent clothing that make for more eccentric outfi ts. “Weaver Birds” sym- bolized “stunning” weaving, which was very popular during the Bauhaus period and then again in the Sixties and Seventies, and is making a comeback, according to Edelkoort. The new version will use “debris found from all over the world,” she said. In reference to “Prehistoric Birds,” Edelkoort said futurism will lean heavenly on prehistoric sources of inspiration for fashion, fi lms, video games, planes, cars, architecture and design. Apparel makers would also be wise to borrow from birds’ ability to keep themselves warm in any season. Having seen snow-covered cherry blossoms in Tokyo this spring — something that had not happened there in a century — Edelkoort noted the fl uke weath- er occurred even as stores like Uniqlo had already shifted their stocks to summer clothes. The world’s erratic weather patterns have affected retailers in other Textured styles and other bird-inspired regions like Australia, she said. pieces should be key trends next year. In relation to “Peasant Poultry,” Edelkoort said “fashion and design will stay on the farm Returning to New York, where indefi nitely,” citing Farmville. Trend Union has an offi ce, proved to com, the Facebook game in be a little challenging for Edelkoort which the user manages a farm, Funny Business and her team. The fact that next as testimony to the trend. Urban fall’s forecast had been named Taking Flight “be- farming, refl ected now in fashion’s folkloric details, ZAC POSEN IS NOT GIVING UP A BIT OF FUN, EVEN FOR came completely hilarious when we couldn’t leave will continue to be important due partially to Karl the requisite luxury of his fur collection for Pologeorgis. Europe because of the volcanic ash,” she said. Lagerfeld’s farm-happy set at Chanel’s February Rather, he plays with three kinds of spiky fox to give the long Though not their intention, that experience illus- runway show, complete with wooden clog-wearing classic jacket a funky patchwork effect. The key to the season trated one of the trends. “The way we live now you models, she said. is blasts of color, often in mixes of furs. Consider Posen’s have to be at home in several countries at once — “Slow food and slow fashions are part of this traditional coat and jacket shapes in dyed green or lavender you have to be able to migrate,” she said, adding that movement to a radical lifestyle change away from mink, red fi sher or raccoon — most mixed with dyed silver or just as birds will go wherever they have to in order the city and its high levels of stress and testoster- black fox, others with fabric. to fi nd food and shelter, current economic conditions one on the road to a healthier lifestyle,” she said. require people to take a similar tack for business. Having predicted the world at large would A mink and A fi sher and “No business is just contained in one place. once again fall in love with America (well before silver fox fox jacket. “We also have to open up our personal borders to Barack Obama was elected President) and therefore jacket. consider what we think we can do and what we will American looks would become popular again world- do. How can we expand and push our own borders? wide, Edelkoort said that has come to fruition “big That is the real question,” Edelkoort said. time.” “This is not for one season,” she said. “There Some bird-related trends were straightforward, is an enormous revival of all the essence of American such as downy fabrics, an infl ux of eggshell colors, sportswear and giving basics this colorful treatment.” different shades of yellow, and “a big focus on the A few minutes later, Edelkoort began to exit the legs, hosiery, shoes and short things.” stage and unprompted, Lola took fl ight. Garment District’s Workforce Struggles PEDESTRIAN-FRIENDLY STREETS, OUTDOOR er percentage of the neighborhood, representing 77 furniture and an assortment of new hotels in the percent of the district’s employment compared with Garment District helped drive pedestrian counts fashion’s 23 percent. Randall also mentioned how the higher than ever before last year. But fashion industry neighborhood’s stakeholders and city offi cials have yet employment in the neighborhood dropped 9 percent, to come up with new zoning for the district, despite a the steepest one-year decline in the past 15 years. three-year effort. “While zoning discussions seem to be That was just some of the news spelled out by on hold at the moment, the board considers the issue to executive director Barbara Randall during the be vital to the future of the district and will continue to Fashion Center Business Improvement District’s pursue this topic with all parties involved,” she said. annual meeting last week. On the upside, last year criminal incidents in the

The number of workers manufacturing apparel area declined by 9 percent compared with 2008. AQUINO and textiles in the district slid 19.3 percent to 8,115, In other FCBID matters, Fern Mallis, the Real and the base for wholesaling apparel fell 10 percent to Estate Board of New York’s Michael Slattery and JOHN 14,377. Randall chalked that up to “obviously a result the Port Authority’s Stephen Napolitano were hon- BY of the recession. However, this is part of a steady de- ored with Fashion Center Awards of Recognition. cline that has been occurring over the last 60 years.” Also, LF USA, part of Li & Fung Ltd., will spon- PHOTOS As fashion has struggled, other businesses like sor “The Fashion Center Sidewalk Catwalk.” For all the looks from Posen’s creative services and nonprofi ts now make up a larg- — R.F. fur collection, see WWD.com. WWD, TUESDAY, MAY 18, 2010 11 WWD.COM Textile & Trade Report African Trade Agreement Loses Steam

By Liza Casabona N Julia Hughes, president of the ibly as it should’ve been and as a result the predict- David Mohlomi U.S. Association of Importers of ability took awhile to establish,” said Stephen Lamar, WASHINGTON — Ten years after the PERTO Rantekoa Textiles & Apparel, said, “In the first executive vice president of the American Apparel & SAM African Growth & Opportunity Act five years [of AGOA] we saw new in- Footwear Association. YLE K was enacted, it is clear the extension vestment, new suppliers, increases in The political realities in the AGOA region are also of duty free benefits alone were not BY trade to the U.S. market. It would’ve challenging. Sources said Madagascar, which was S enough to build a vibrant, regional been a success story.” stripped of its AGOA benefits because of a recent coup,

apparel industry. PHOTO But Asia’s superior manufacturing illustrates the challenges of doing business in a region When the agreement known as and transportation infrastructures with diverse and sometimes unpredictable political forc- AGOA extended duty free preferenc- combined with shipping challenges es at play. The recent coup in Madagascar was the second es to more than two dozen eligible in Africa and increased options for in the last 10 years and both resulted in disrupted ship- African countries, it was hailed as a duty free access to the U.S. market ments and uncertainty for businesses. Many companies positive model for linking trade with eroded Africa’s apparel market share pulled out of the country. Trust said he still operates fa- aid for developing regions. Apparel in recent years, said Paul Ryberg, cilities in Madagascar, but all his goods are now shipped producers, enticed by the duty free president of the African Coalition for to Europe and South Africa, instead of to the U.S. benefits the act extended, shifted Trade, a nonprofit advocacy group of It’s also important to note that AGOA includes dozens production into the region. In 2005, African companies that export to the of distinct nations, each with their own unique infra- five years after AGOA was enacted, it Martin Trust U.S. under AGOA. structure, political and social realities, observers said. looked like the initiative was on track The AGOA region continues to be In an effort to better compete, the government of to be a success as the region’s share plagued by systemic infrastructure chal- Lesotho is investing in improvements to physical infra- of U.S. apparel imports doubled. lenges ranging from insufficient power structure like roads, utilities, water and telephones, and But in the intervening years, AGOA’s grids and water to lack of reliable trans- soft infrastructure, like trade facilitation, said Lesotho slice of the U.S. market has shrunk back portation and problems with roads and ambassador David Mohlomi Rantekoa. Access to capital to pre-agreement levels. In February ports. The lead times for goods manu- is another crucial challenge for the industry, he said. 2010, AGOA countries claimed a 1.12 factured in the region to reach the U.S. “We should not abandon the apparel sector, but we percent share of U.S. apparel imports, are impossibly long and access to trade need to move into other sectors,” Rantekoa said. up only slightly from 2000 when the re- financing is limited, apparel executives Within the apparel industry, he said the priority is gion shipped 1.02 percent of apparel to and industry sources said. to shift from basic items into higher value products like the U.S. At their peak in 2004, AGOA im- A spokeswoman for the U.S. Trade shoes and suits. ports represented a 2.24 percent share Representative said, “Africa’s greatest In order to improve shipping options in the AGOA of the U.S. apparel market. opportunity to expand and diversify its countries, economy of scale has to be achieved. There “AGOA is running out of gas,” said exports to the U.S. in apparel as well needs to be enough apparel production to make the ad- Martin Trust, president of Brandot as other products will depend on them ditional cargo ships or faster cargo ships worthwhile. International, which holds an equity interest in more becoming more competitive rather than protection.” But without a stable, fast transportation system, increas- than a dozen textile and apparel companies. Capacity and infrastructure are the biggest challenges ing production is challenging at best, experts said. U.S. retail customers in the apparel industry have in Africa, said Helga Ying, director of worldwide govern- “The scale of export clusters in Africa is still much given up on the region prematurely, he said. ment affairs and public policy for Levi Strauss & Co. smaller than those in the established export producers Trust said during the life of the program, his compa- “Transportation networks in the region tend to be un- in Asia and so costs are higher until more firms enter ny has shipped more than 500 million units of apparel reliable, so it’s difficult and costly for us to ship in raw the clusters and the scale economies kick in,” said Paul from the region to the U.S. through his various ventures, materials and to ship out finished products,” Ying said. Collier, director of the Center for African Economies at which included Limited Stores Inc. until he retired in “Port infrastructure in the region is also an issue.” Oxford University. 2003 and started Brandot. Ying said the program also had “some hiccups along Levi’s Ying said, “Capacity building and infrastruc- “Trade agreements are a very important mechanism to the way.” Congress implemented several changes to the ture improvement are some of the key things that need promote trade,” said Paul Bingham, managing director in agreement, including to requirements about the use of to occur [in the AGOA region]. Making African nations the international global commerce and transportation prac- materials from third-party providers when inputs were logistically easier to do business in would help attract tice at IHS Global Insight. “Reduction of duties matters, but not available in the AGOA region. more apparel companies to the region. It would also help it’s just a portion of the costs.” “AGOA was not implemented as robustly and flex- if the trading environment were more predictable.”

Indian farm hands pluck cotton India at Center of Cotton Conundrum at a field in Badarkha village. By Mian Ridge NEW DELHI — Indian apparel manufacturers feel the country’s ban on raw cotton ex- ports and abundant supplies of cotton at lower prices, combined with the global eco- nomic recovery, will help clothing exports rise about 10 percent this year. Elsewhere in the region, however, India’s protectionism is having a decidedly nega- S tive effect, especially in Pakistan and Bangladesh, textile-producing countries that are E

heavily reliant on comparatively cheap Indian cotton. Indian farmers and merchants, MAG meanwhile, are angry they have been shut off from their international buyers. I

On April 19, India indefinitely suspended exports of raw cotton shipments in a bid /GETTY to bring down domestic prices and ensure there was sufficient cotton for manufactur- P /AF Y

ers here. The ban has hit the countries that buy large quantities of cotton from India, AK which became the world’s second-largest cotton exporter after adopting genetically TH AN P modified strains of the plant. In the first two months of the year, it replaced the U.S. as the biggest exporter of cotton after China bought in 265,460 tonnes of Indian-grown SAM

cotton, a rise of 1,694 percent from a year earlier. BY China imports more cotton than any other country — an estimated 9.5 million bales a year.

As a result of the surge in demand, as well as global shortages from poor harvests, PHOTO Indian cotton prices before the ban had risen more than 25 percent since October. India’s Apparel Exporters Promotion Council said it expected exports to rise about Pakistan has no bar on exports, which means growers sell to the international mar- 10 percent this year after declining 11.4 percent in 2009 to $9.7 billion. Though this ket, exacerbating the country’s cotton shortage. Clothing manufacturers are calling decrease was largely due to the global economic downturn and reduced orders in for an export ban, warning of dire consequences otherwise. India’s keys markets of Europe and the U.S., textiles manufacturers have lobbied the “Some of our mills may even have to shut down for some time,” said Mian Shahzad government to curb imports. Ahmed, vice president of the All Pakistan Textile Mill Association and chief executive “The ban on cotton exports is crucial,” said Praveen Nayyan, senior vice chairman officer of Indus Dyeing & Mfg. in Karachi. “Between 30 to 40 percent of our mills may of the AEPC. “The spinners now have enough to spin. Once we have enough cotton be affected in this way and we will all lose money.” again, the ban can stop.” He added the ban would not benefit India in the long term because buyers sourced The ban has had something of a cooling effect on domestic prices. In the weeks before the from other countries including Brazil, West Africa and the U.S. The ban is unlikely to ban, cotton in India was selling at around 30,000 rupees, or about $655 at current exchange, last long because India’s cotton crop tends to outstrip domestic demand. per candy (around 370 kilos). In early May, this had fallen to around 27,000 rupees, or about That view has been echoed by the Indian Cotton Association, which has warned $590. Garments manufacturers said they hope the price would come down further. the ban may result in India being sidelined by buyers in the future. The world was already facing a decrease in cotton stocks of some 20 percent for “Cotton acreage, which has seen a rising trend recently, will receive a setback if the year because of reduced output in China and higher demand in India and Turkey, farmers do not receive a fair price as per international levels as a result of the sus- among other factors, according to Cotlook, an cotton industry research firm. pension of exports,” the association said. “[It] will discourage them from planting Last week, the U.S. Department of Agriculture released figures showing that world cotton in the coming season.” output would reach 113.9 million bales, up from 102.9 million bales in the current In Bangladesh, too, India’s ban has come as a blow. The country buys 30 percent marketing year. But world consumption, it said, may rise to 119.1 million bales next of its cotton from India. Textiles are Bangladesh’s main export, generating $15.56 bil- season from an estimated 115.9 million. The shortage is causing mills in Asia to raise lion, which was 80 percent of its annual export income in the year to June 2009. fabric prices, passing higher costs on to manufacturers and brands. For cotton growers in the U.S., India’s ban has resulted in a flood of new orders. In Pakistan, cotton prices have soared, prompting predictions that cotton mills The USDA said cotton production in the U.S. will rise 37 percent in the next market- will be forced to close. The country is the world’s fourth biggest cotton producer, but ing year amid an increase in harvested acreage and “unusually favorable” soil mois- it relies heavily on Indian imports for a domestic demand of up to 16 million bales a ture in Texas, the biggest fiber-growing state. Output will rise to 16.7 million bales in year. This year, it is around three million bales short. the year that begins Aug. 1, from 12.2 million bales in the current season, USDA said. 12 WWD, TUESDAY, MAY 18, 2010 Class of 2010: Glimmer of Hope on the Job Front By Lisa Lockwood THE PROSPECTS FOR NEW COLLEGE GRADUATES looking for fashion and retail jobs are improving — but still aren’t easy. During the recession, many firms pulled back from campuses and put the brakes on their recruiting. Some have slowly returned to hiring, but not nearly at the ro- bust levels of three years ago. Another problem facing the current crop of grads is that many fashion firms, particularly smaller ones, have reduced payrolls and have brought in unpaid interns to take up the slack. Despite some 290,000 jobs created in April in areas ranging from manufacturing to profes- sional services, the unemployment rate for the whole- sale and retail trade was 9.5 percent, according to the U.S. Bureau of Labor Statistics. But it’s not all doom and gloom. According to the 2010 job outlook from the National Association of College and Employers, firms plan to hire 5.3 percent more new college graduates in 2009-2010 than in 2008-2009. That’s the first positive news since October 2008, when employers predicted a 1.3 percent gain in college hiring. That projection dropped in fall 2008, when the economy nose-dived. College hiring has been in negative territory ever since, hitting bottom in spring 2009 when companies reported hiring almost 22 percent fewer grads than a year earlier. The uptick in expected hiring provides hope for college grads seeking jobs in retailing. Accounting services, engi- neering services and retail employers top the list of com- panies extending offers to recent bachelor’s degree gradu- ates, according to a NACE survey released last month. Ed Koc, director of strategic and foundation research at NACE, said these retailers range from large depart- ment stores such as Macy’s and big-box retailers such as Lowe’s, Home Depot and Bed, Bath & Beyond, to small boutiques. “While hiring has increased by 5 percent, after a 22 percent decline, it’s still not at the levels of 2007 and 2008,” he said. WWD contacted retailers, fashion companies, uni- versities and headhunters about the job market for the Class of 2010, especially for those looking to enter the retail-fashion sector. The report card is mixed. “It continues to be a challenge,” said Elaine Hughes, chief executive officer of E.A. Hughes Associates, an ex- ecutive search firm. “One of the things that can give any- body a leg up, regardless of the school, is if they have had internships. If they haven’t worked in a retail situa- tion, they’re more behind the eight ball.” Hughes said a lot of new grads aren’t familiar with the different concepts, including value-based businesses such as Ross Stores Inc. or The TJX Cos. Inc., both of which are expanding and recruit on college campuses. She said “the model is changing” because of retail con- solidation, the globalization of the industry and opportu- nities moving from domestic manufacturing to overseas. Macy’s Inc., J.C. Penney Co. Inc., Target Corp., Kohl’s grads lasts about 10 weeks, and new hires get placed Sherry Lang, senior vice president of global commu- Corp., Liz Claiborne Inc., Li & Fung Ltd., The TJX Cos. into rotational assignments with a different business, nications at The TJX Cos. Inc., said the retailer plans to Inc. and Polo Ralph Lauren Corp. are among the com- or move around to different stores. “We’re looking for hire as many as 150 college graduates or “early career” panies that aggressively recruit on college campuses for future leaders of the company,” she said. professionals into its corporate merchandise training interns and full-time positions. Penney’s also offers a 10-week internship program, program this year. The program was created specifi- where 125 interns (versus about 100 last summer) cally to develop the quantitative and fashion planning RETAILERS were selected to learn firsthand the daily operations skills needed by off-price retail professionals, said Lang. Macy’s has doubled the number of interns being hired of a store. As part of a team, the sales manager interns TJX’s divisions include TJ Maxx, Marshalls, Winners, this summer for its stores organization, and the num- participate in sales leadership, inventory flow, event HomeGoods, TK Maxx, AJ Wright and HomeSense. ber of full-time trainees has also increased, said Anne planning and merchandise presentations. A Penney’s “TJX’s anticipated hiring of new college graduates this Voller, vice president for executive recruitment and col- spokeswoman said 80 percent of last year’s interns were year is almost three times what it was last year, as the lege relations. “With the My Macy’s rollout, we decided offered full-time positions in the retailer’s training pro- company took a conservative approach to hiring…due to to put more bench strength into the intern and full-time gram upon graduating from college. Of those, 70 percent the unstable nature of the economy,” said Lang. The com- program,” she said. Voller said the company puts significant effort into hir- ing summer interns with the intention that they will be With the My Macy’s rollout, we decided to put more bench strength offered full-time positions upon graduation. Macy’s hires interns in two areas — the New York merchant program, into“ the intern and full-time program. where students work with buyers and planners, and stores organization, where students work with store managers ” — Anne Voller, Macy’s Inc. and sales managers at Macy’s units across the U.S. Voller, who has a team of 12 recruiters, said Macy’s accepted, she said. Last year, Bloomberg BusinessWeek pany has also expanded the number of summer interns. visits 40 college campuses (sometimes Macy’s chair- ranked Penney’s among the 40 “Best U.S. Companies for TJX, based in Framingham, Mass., has started to man, ceo and president Terry Lundgren will show up Undergraduate Internships,” coming it at No. 27. expand its recruitment program into a more global ini- on campus, too) and recruits all majors, ranging from Gap Inc. offers a competitive nine-month training tiative, targeting Europe, one of the company’s growth business to fashion retailing to psychology. “We look for program for grads that focuses on three core areas of markets. As a result, TK Maxx, headquartered in the leadership potential, smart students that are interested the business: merchandising, production and inven- U.K., is creating its first pan-European center, bringing in retail, that have good critical-thinking skills, are in- tory management. recruitment and internships under the same manage- volved in campus, have juggled their multiple priorities The number of people who have been hired this year ment umbrella, said Lang. and have an ability to be flexible,” said Voller. She said “is consistent with what we’ve done in the past,” said a Macy’s doesn’t recruit M.B.A.’s, but Bloomingdale’s will spokeswoman. All of the jobs are based at corporate FASHION COMPANIES bring in a few M.B.A.’s in the buying and planning area. headquarters in San Francisco. After completing a train- Major fashion brands have been busy on the college cir- Macy’s expects to bring in 150 summer interns and ing program, participants have the opportunity to work cuit, as well. hire 300 college graduates for full-time positions this full-time as assistant merchandisers, inventory planning Liz Claiborne Inc. has been actively recruiting col- year, said Voller. analysts or assistant production managers. Gap also offers lege grads. It just hired three for partnered brands, The company’s retail training program for college a 10-week summer internship program in San Francisco. three for Kate Spade, eight for Juicy Couture and one WWD, TUESDAY, MAY 18, 2010 13 WWD.COM Class of 2010: Glimmer o f Hope on the Job Front

S year, it has hired 20 graduates for full-time positions, see what they need to do improve their performance to said Darling. The company also recruits students in get to the next promotion.” /CORBI Y London and Italy for internships in New York. The in- Wesley E. Thorne 2nd, assistant director for busi- ternships are five-day-a-week, paid positions. ness and employer relations at the University Career WALSK

O The students are divided into groups, and several will Services at Northwestern University, said, “We have a visit a retailer and find a business opportunity for LF, and couple of really strong employers who recruit [in retail- then develop a presentation that is given to the presidents ing]. Popular among our students are the analyst pro- of the divisions. Last year, students went to Macy’s, Kohl’s, gram at Target Corp. and Abercrombie & Fitch’s corpo-

PHOTO BY JEFF K JEFF BY PHOTO Sam’s Club and Wal-Mart and worked in cross-functional rate training program.” He said 10 to 20 students join teams. This year, they’re adding social networking to the Target each year, both in full-time positions and summer list of opportunities to develop a business. internships. Sears Holding Corp. also recruits for busi- Since LF has a growing accessories business, it is ness analysts, inventory analysts, and logistics manage- interested in cultivating young talent. To that end, LF ment, and L’Oréal hires Northwestern grads. sponsors a scholarship at Parsons for a student fo- “We’ve definitely seen an uptick in terms of recruit- cused on accessories called the Kathy Van Zeeland ing,” said Thorne. Scholarship. The scholarship awards four students Trish Shafer, director of the career services center $10,000 a year for both their junior and senior years. at Philadelphia University, said the school hosted three big career events during the year. “It’s too soon to tell COLLEGES AND UNIVERSITIES the outcomes, but anecdotally, students are coming into Universities contacted said that, for the most part, re- the office and saying they got a job.” However, she said, cruiting increased on their campuses this year, but cor- there was a dip this academic year and companies came porations were coming later in the season for full-time to campus later. positions, trying to get a better read on whether the eco- Ross Stores, Penney’s and Wal-Mart were new to cam- nomic recovery was sticking. pus this year. Shafer said Penney’s hired at least two Erin Armendinger, managing director of the Jay H. people and Ross is bringing in several interns. Other Baker Retailing Initiative at the Wharton School, said re- companies that recruited either on campus or through cruiting vastly improved this year. “From phone calls from a Design Expo (portfolio review day) included Echo companies and recruiters and alums, we are definitely Design Group, Tommy Hilfiger, Destination Maternity looking at one of the best years we’ve ever had,” she said. Corp., Carole Hochman, Limited Brands Inc., Fishman Recruiting was down 10 to 15 percent in 2009, she said. & Tobin, Li & Fung, Abercrombie & Fitch Co. and Eileen “The pendulum swung with the recession,” Fisher. She noted that one senior was offered an intern- Armendinger said. “People cut training programs and ship at Vera Wang and is also talking to Jones Apparel scaled back. Now when the economy has picked up and Group Inc. about a full-time job. people have started spending again, they [companies] Many of Philadelphia University’s graduating seniors realize they may have sliced too far.” posted their information on LinkedIn and got involved She noted that at the M.B.A. level, there are supply- in groups on the Web site, where employers post jobs. and-demand problems, with a lot of career switchers who Shafer noted that she’s seen a 16 percent increase in want to get into the retail industry, “but the retailers like students registering to receive academic credit for their to see prior experience, so there’s a bit of a mismatch.” summer internship programs. Among some of the companies that have recruited at She said those seeking fashion merchandising and the M.B.A. level are Coach Inc., Bloomingdale’s, Li & fashion management jobs had the best outcomes. The Fung, Gap, L.L. Bean and Gucci. companies started recruiting in October for May grads. Penn undergraduates are getting jobs at firms such Those companies looking for designers began their as Macy’s and Li & Fung, she said. “At search in March, April and May. the undergraduate level, there’s strong Connie Passarella, a career competition for a Macy’s offer,” she said. counselor at the Fashion Institute Nordstrom Inc. recruited at Wharton A core part of of Technology, said the job outlook for the first time for an M.B.A. “Urban “ “is slowly getting better. It’s turn- Outfitters offered extra spots for Penn our mission is to ing, and not going to happen over- [undergraduate] kids,” and Collective create a world-class night.” FIT grads are finding jobs The competition for jobs in Brands Inc. recruited for undergrads. in such areas as production, mer- the fashion-retail sector for Simon Collins, dean of the school internship program chandising, product development, new graduates continues to of fashion at Parsons, said, “In the design, advertising, public relations be highly competitive. heyday of 2008, people were fall- and marketing. ing all over our grads, and we had a for undergrads and The Class of 2009’s graduates took 91 percent hiring rate…but this year longer to find positions. “Of those seek- I’ve been getting a lot of direct calls grad students. ing work, 90 percent are employed,” for corporate. The areas encompass merchandising, from companies who’ve seen what — Rick Darling,” LF USA said Andrew Cronan, director, career sales, planning, production, marketing and e-commerce. we’re up to and want to build up their and internship center. “That was con- The company also offers a 10-week internship program staffs.” Among the companies seeking sistent over many years.” for rising seniors and juniors with opportunities to to hire are Li & Fung, Calvin Klein, Armani Exchange Elizabeth Marcuse, president of LIM College, said, “I’ve interact with senior executives, attend meetings, visit and Vivienne Tam, in addition to firms working with seen an increase in the number of people who have se- showrooms and be exposed to product. Parsons’ career services. cured full-time positions versus last year. It’s more similar This summer some 75 students will have paid intern- Melinda Burke, director of the Lundgren Center for to 2008 before the world collapsed.” ships at Claiborne on both coasts. Among the schools Retailing at the University of Arizona, has also seen a LIM graduates are getting jobs in public relations, where the company recruits are Parsons The New marked improvement in recruiting. “We’ve seen more marketing, merchandising, visual merchandising and School for Design, LIM College, Fashion Institute of activity among our students for East Coast retail [and buying. Some 55 percent of graduates are fashion mer- Technology, Syracuse University, Boston College, UCLA, fashion] than in a long time.” She said firms such as chandising majors. For the first time, companies such as Stanford University, New York University, Rutgers Polo Ralph Lauren, Kenneth Cole Productions Inc. and Penney’s, Lacoste, Ross Stores and Levi Strauss & Co. University, Rhode Island School of Design, Pace and Li & Fung have been hiring for summer internships, and recruited on campus. “Saks has 10 spots in their execu- University of Miami. Some 18 to 20 percent of the in- Macy’s, Wal-Mart Stores Inc., Kohl’s and Penney’s have tive training program, and two of our seniors have been terns are eventually hired for full-time jobs. actively recruited. She attributed that to both more vis- secured,” Marcuse added. LF USA, a division of Li & Fung, is pursuing college ibility because of the Lundgren Center, and its Retailing Among the companies where the most LIM stu- grads for both internships and full-time positions. “A core and Consumer Sciences Program, which offers courses dents have scored internships this year are Bergdorf part of our mission is to create a world-class internship ranging from product development to buying and plan- Goodman, Victoria’s Secret, Juicy Couture, Gucci, program for undergrads and grad students,” said Rick ning, and consumer behavior. Donna Karan, Henri Bendel, Barneys New York, Darling, ceo of LF USA. To accomplish that, Darling three Burke noted that in the last two weeks alone, she’s Anthropologie and Saks Fifth Avenue. While final jobs years ago hired Karen Coe, executive vice president of been contacted by Target, Penney’s and Kohl’s for sum- aren’t available for 2010, companies that hired the human resources, who developed the internship program. mer interns. She’s also noticing that companies such as most LIM College graduates for full-time positions last This summer, the firm has hired 50 students from col- Apple Inc., Verizon Communications Inc. and AT&T Inc. year, in order, were Bloomingdale’s, BCBG, Delia’s, leges around the country, including Cornell, Colgate, have been recruiting retail students for their sales lead- Juicy Couture, Macy’s Merchandising Group, Victoria’s LIM, Boston University, Rhode Island School of Design, ership and retail training programs. Secret, Bergdorf Goodman, Diesel, Henri Bendel and School of Visual Arts, Savannah College of Art & Design, Asked whether her students tend to stay with retail Saks Fifth Avenue. Syracuse University, University of Pennsylvania and organizations for the long haul, she said, “There’s a lot Marcuse said many of the seniors use social network- University of Wisconsin. Interns work at LF in the areas of turnover two to three years out. They may find they ing tools to find jobs. “They’re posting their own career of design, sales, marketing, IT and financial. It also has re- don’t get promoted and they’re not challenged. [But] pages. We encourage them to create their own brands.” cruited two M.B.A. students from Penn’s Wharton School they need to have patience. Hiring experts believe it’s imperative retailers and for a summer internship and is talking to two others. “But I’m not sure it’s unique to retailing,” she said. fashion firms recruit young people. Each intern works with a specific manager for 10 “The college grad is on the go, they multitask and “They’ve got to bring in young talent,” said Hal weeks, and there are project mentors and midterm re- they’re impatient and always looking for the next big Reiter, ceo of Herbert Mines Associates. “We’re suffer- views. Last year, the company had 35 interns and hired thing. They have to be challenged and see a clear career ing a material dearth of talent, and unless we recruit 13 for entry-level positions. Half were in design posi- path. Retailers need to define what the opportunities and retain these young people, then they’ll be nobody to tions, and the others were in marketing and sales. This are and give benchmarks so that they [employees] can run these businesses in 15 years.” FINANCIAL new

14 WWD, TUESDAY, MAY 18, 2010 WWD.COM Financial For full daily stock changes and more financial news, see WWD.com / business-news. L’Oréal Forecasts Strong Growth in China By Amanda Kaiser in 1993. Since then, it has built a business Retail Shares Eke Out 0.2% Gain here selling its luxury, midrange and By Evan Clark due to very strong first-quarter results SHANGHAI — L’Oréal executives in Asia mass market products through a network and debt repayments,” said Moody’s debt said the French beauty giant is expect- of 33,271 sales points including depart- RETAIL STOCKS FELL AS MUCH AS analyst Maggie Taylor. “We believe the ing to post another year of double-digit ment stores, hypermarkets, hair salons 2.1 percent Monday, but staged a come- improvement in credit metrics is sustain- sales growth in China this year. and perfumeries. Its research center is back and followed the broader markets able and expect they will continue to im- The company plans to reach sales in located in the Pudong district of the city, into positive territory as investors looked prove over the next 12 months.” China of at least 1 billion euros this year, home to the iconic Pearl Tower and the past Europe’s debt troubles and took the Last week, Standard & Poor’s moved or $1.23 billion at current exchange, which tallest skyscrapers in the city. weakness as a buying opportunity. Macy’s rating to “BB-plus” from “BB” — would represent an increase of 16.1 per- Much like its business elsewhere The S&P Retail Index ended with a 0.2 one notch away from investment grade cent on 2009’s figure of 861.6 million euros, around the world, L’Oréal’s distribution in percent, or 0.80 point, rise to 455.67. The by that rating agency’s scale as well. If or $1.2 billion at average exchange, execu- China is extremely varied. On the higher Dow Jones Industrial Average fought back Macy’s could get out of “junk” bond terri- tives said Monday at a press briefing here. end of the spectrum, it supplies shampoos from its 1.7 percent slide to post a 0.1 per- tory, it would be cheaper for the company Last year, L’Oréal registered like-for- and other hair care products to a premi- cent, or 5.67 point, gain to 10,625.83. to borrow money. It would also make the like sales growth in China of 17.6 percent. um salon in the Plaza 66 shopping mall. The euro perked up as the day pro- stock more attractive to certain large in- But executives said the market isn’t slow- But it also has a presence in the Shanghai gressed after hitting a 4-year low of stitutional investors who by their charters ing down — they are just being cautious on No. 1 Pharmacy, where its Vichy counter $1.223. The currency’s been losing ground do not invest in firms with junk ratings. the 2010 target and they plan to surpass it. is surrounded by glass display cases of against the greenback as investors move Retailers gaining ground included “That will be a fantastic achievement, a ginseng and dried bullfrog organs. to shield themselves from the European Saks Inc., up 2.5 percent to $9.34, and Gap symbolic achievement,” said L’Oréal China Jochen Zaumseil, managing director of debt crisis. A nearly $1 trillion bail- Inc., ahead 1.1 percent to $23.22. chief executive officer Paolo Gasparrini. L’Oréal Asia-Pacific, said the company is out plan from the European Union and European markets finished the day Executives said they don’t expect the growing elsewhere in the region and he es- International Monetary Fund has helped with mixed results. The FTSE 100 in overall market to contract and, on the con- timated emerging markets in Asia will ac- keep the crisis, which started in Greece, London was essentially flat, declining trary, see plenty of untapped growth poten- count for 25 percent of the French group’s at bay, but investors are closely watching less than 0.1 percent to 5,262.54, while the tial in the country, particularly in areas like turnover in 2020 compared with the 16 to for signs of instability in the region. CAC 40 in Paris dropped 0.5 percent to online sales and men’s grooming products. 17 percent the firm currently generates. Shares of Macy’s Inc. fell 1 percent to 3,543.55 and Frankfurt’s DAX Composite Gasparrini said China’s cosmetics “We are by far the strongest grow- $22.31 despite the day’s rebound and an Index rose 0.2 percent to 6,066.92. market grew 10 percent last year to 98.09 ing company in market share over the upgrade from Moody’s Investors Service. Asian markets weathered sharp de- billion yuan, or $14.35 billion, excluding last four or five years,” Zaumseil said, The debt watchdog raised its corporate clines, including a 5.1 percent drop in salon sales. Like in Japan, women here are stating L’Oréal had a market share of family rating on the department store to the SSE Composite Index in Shanghai to eager to preserve and protect their com- 10.8 percent in 2009 in Asia, excluding “Ba1” from “Ba2,” leaving the rating just 2,559.93 and pullbacks of 2.2 percent and plexions through whitening regimes. Skin Japan. That compares with an 11.7 per- one step away from investment grade ter- 2.1 percent, respectively, for the Nikkei care is the most prominent product catego- cent share for P&G, he added. ritory with a stable outlook. 225 in Tokyo, to 10,235.76, and the Hang ry accounting for 56 percent of the market, But, the executive said, L’Oréal is al- “The upgrade to Ba1 reflects Macy’s Seng Index in Hong Kong, to 19,715.20. while hair care and makeup follow with 26 ready the market leader in the region in material improvement in credit metrics — With contributions from Arnold J. Karr percent and 13 percent shares respectively, certain areas such as skin care, men’s the Italian executive explained. products, makeup, hair color and profes- He also said the French giant’s market sional salon products. share in China has risen from 8 percent “Men’s care is still a small business in People’s Liberation Cuts Loss in 1st Qtr. in 2004 to 11.7 percent in 2009. Procter Asia but very fast-growing,” he said By Alexandra Steigrad product lines at higher gross margins,” as & Gamble’s market share over the same Zaumseil said China and India present well as a William Rast sponsorship agree- period has fallen from 24 percent to 19 “enormous potential for growth.” Beauty PEOPLE’S LIBERATION INC. REDUCED ment “generated without any correspond- percent, while that of Shiseido has grown expense per capita is highest in the mature its net loss in the first quarter but fell ing cost of revenue.” from 4 percent to 7.7 percent, he claimed. market of Japan a 115 euros, or $141.68 at short of a profit despite improvements in Stripping out sponsorship revenue, gross L’Oréal approached the Chinese mar- current exchange, per year but it is only sales and gross margin. margin from product sales grew 360 basis ket in the Eighties and established its 5 euros, or $6.16, per year in China and 1 The company, which designs and dis- points compared with the prior-year period. first market testing facility in Hong Kong euro, or $1.23, in India, he explained. tributes high-end and casual apparel On the company call, chairman and chief under the People’s Liberation, William executive officer Colin Dyne said the eco- Rast and J.Lindeberg brand names, said nomic environment had impacted the com- for the quarter ended March 31, its net pany, and wholesale sales have suffered. IN BRIEF loss fell to $979,930, or 3 cents a diluted But Dyne added the firm looks forward tCOACH, TARGET SETTLE CASE: Coach Inc., Target Corp. and LF USA reached a settle- share, from a loss of $1.4 million, or 5 to growth opportunities such as William ment Monday that ended an infringement lawsuit the accessories maker brought cents a share, in the year-ago period. Rast’s upcoming footwear line, as well as last year. Terms were confidential. Court records said the suit, filed in U.S. District Strong retail sales and sponsorship rev- other initiatives that will help the company Circuit in Manhattan, was voluntarily dismissed. “We are pleased to have reached enue lifted net sales 11 percent to $8.4 “continue to build” its retail model. a settlement that is satisfactory to all parties,” said Todd Kahn, Coach senior vice million, from $7.5 million, a year earlier. “Both our J.Lindeberg and William president and general counsel. Coach accused Target of selling handbags that in- Gross margin improved to 53.6 percent Rast retail stores have seen increased fringed on the trade dresses of its Patchwork and Ergo designs. Target brought a in the first quarter from 44.5 percent, a momentum and awareness.…We are con- counterclaim against Coach that sought to invalidate the two trade dresses. The year earlier. The company said the im- tinuing to execute on our key initiatives parties later updated the filing to include LF USA’s Rosetti Handbags as a defen- provement was led by “increased retail and are confident about the long-term op- dant. The vendor had supplied the allegedly infringing bags. sales of J.Lindeberg and William Rast portunities for our business,” he said.

10 BEST PERFORMERS 10 WORST PERFORMERS

DAILY COMPANIES P/E VOLUME AMT DAILY COMPANIES P/E VOLUME AMT HIGH LOW LAST %CHANGE HIGH LOW LAST %CHANGE

11.56 10.81 K-Swiss (KSWS) - 361383 11.55 +10.95 1.38 1.28 Birks & Mayors (BMJ) - 2500 1.35 -7.21

13.72 12.49 Movado (MOV) - 204547 13.66 +7.05 4.29 4.00 Unifi (UFI) - 199024 4.05 -4.93

10.32 9.50 Christopher & Banks (CBK) - 284317 10.21 +6.80 8.31 7.77 Syms (SYMS) 14.5 15107 7.98 -3.16

15.78 14.72 Stage Stores (SSI) 19.7 407948 15.76 +6.78 30.08 27.97 G-III Apparel (GIII) 16.2 130246 28.90 -2.73

23.66 21.75 Perry Ellis (PERY) 21.9 215057 23.48 +6.15 6.08 5.90 Benetton Group * (BEN:MI) 8.0 549542 5.90 -2.72

5.50 4.95 Quiksilver (ZQK) - 2920798 5.46 +4.80 622.00 603.00 Asos * (ASC:L) 43.7 526845 608.00 -2.64

22.10 20.83 Collective Brands (PSS) 16.5 1271778 22.01 +4.12 90.01 84.52 Polo Ralph Lauren (RL) 22.0 2331361 86.98 -2.62

28.15 27.39 Alberto Culver (ACV) 21.3 1060428 27.91 +4.03 39.97 37.09 Lululemon (LULU) 48.0 1135425 38.53 -2.13

28.79 27.10 Aéropostale (ARO) 12.1 3848065 28.52 +3.78 0.99 0.96 Frederick’s of Hollywood (FOH) - 6381 0.96 -2.04

24.77 23.32 Maidenform (MFB) 13.1 274562 24.64 +3.75 44.98 42.30 Warnaco (WRC) 19.8 882134 43.60 -1.98

* Editor’s note: European stocks are quoted in the currency of their principal exchanges. Shares on the London Stock Exchange are quoted in pence, Richemont and The Swatch Group are quoted in Swiss francs and Hennes & Mauritz is quoted in Swedish kronor. All other European stocks are in euros. WWD, TUESDAY, MAY 18, 2010 15 WWD.COM

A couture look Gaultier Shows in Moscow on the runway. By Miriam Elder MOSCOW — To Jean Paul Gaultier, Russia is a land of contradictions. “Russia is a young and fresh country, fi lled with all the spontaneity of youth. At the same time, it’s got great tradition and a very old culture,” Gaultier said in the middle of a fi ve-day trip to Moscow last week. “It’s a great and very exciting mix.” What better site, then, for Gaultier to hold his fi rst couture show in Russia than in the gilded hall of one of the capital’s busiest train stations. Leggy Slavic beauties donned Gaultier’s summer collection, as well as select retrospective pieces. Overhead, an ornate ceiling was decorated with Soviet-era images and a painted red banner reading “Workers of the world unite.” Outside the train station, hundreds of passengers gathered to catch a glimpse of Moscow’s beau monde. It’s a rough contrast that inspires Gaultier, who fi rst visited Moscow in 2005 to mark the opening of his fi rst boutique in the capi- tal. That trip was followed by ready-to-wear and couture collections Jean Paul imbued with infl uences from Russian folklore. Gaultier “It’s a creative explosion here,” said Gaultier. “With this romanti- cism and this madness, how could you not be creative?” For the past year and a half, that creativity was not matched by high spending. The global fi nancial crisis hit Russia harder than many countries, sending retail crashing by around 30 percent. Gaultier’s visit is a sign that trend might be reversing, said Mikhail Kusnirovich, chief executive offi cer of Bosco di Ciliegi, the luxury holding that represents Gaultier and dozens of other Western labels in Russia. “We thought about organizing this a year ago but realized it wasn’t the time,” Kusnirovich said. Now, with retail showing incremental recovery since the start of spring, the time seemed right, he said. Bosco plans to open another Max Mara boutique this year, as well as 21 shops devoted to the group’s Bosco Sport brand. Despite the crisis, Gaultier said he saw Russia as a country in the midst of massive growth. “Russia is changing so quickly. It’s moving and really opening up to fashion,” he enthused. That’s a message Gaultier managed to encapsulate in his show at Kazan train station, one de- signed, he said, to represent the possibilities of travel. “It’s always been one of my dreams to do a show at the Gare de Lyon,” Gaultier said of the landmark Paris station. That has never worked out and, instead, he said, “I’m realizing this dream in Moscow.” In addition to the Friday night couture show, Gaultier spent a full day fi tting Russian clients and one day touring the capital’s fashion museums. PHOTOS BY WILL WEBSTER WILL BY PHOTOS

WWD.COM/CLASSIFIEDS

For more career opportunities log on to WWDCareers.com.

experienced buyer high end specialty store retailer has opening for an experienced buyer. We are seeking a professional with ex- PATTERNS, SAMPLES, perience buying women’s designer and SALES POSITION Cash For Retail Stock & Closeouts. PRODUCTIONS contemporary. Seeking a highly motivated, hardwork- No Lot Too Big or Too Small. All line, Any styles. Fine Fast Service. Will be responsible for all store buys ing, min. 10 years sales exp. w/ junior Call CLOTHES-OUT: Call Sherry 212-719-0622 including e-commerce. & plus size retail chain and dept. (937) 898-2975 Send resume with salary requirements stores. Salary plus commission. Email PATTERNS, SAMPLES, to: resume to [email protected]. PRODUCTIONS Full service shop to the trade. cperfettini@ Fine fast work. 212-869-2699 catherinemalandrino.com TEXTILE SALES Well established vertical knit textile mill looking for a seasoned commis- sion sales person (minimum 5 years PATTERN MAKER experience selling textiles). Must be Spaces Major women’s apparel mfg. located in dynamic, a highly self motivated indi- New York City is seeking exp. pattern- vidual with strong presentation skills. maker that specializes in creating first Able to work autonomously as well as patterns. Candidate must be experi- a team player. The ideal candidate COMMERCIAL enced in all types of garments and must be VERY WELL CONNECTED knowledge of garment construction. with the manufacturing/garment and REAL ESTATE Must have good communications skills retail sector. Must have a strong sense and be detail oriented. Candidate of fashion and market trends. Able to A/R professional must be dependable, flexible and offer full packages as well as all high end apparel company in midtown able to work in a fast paced environ- circular knit fabrics. This is a great ment while maintaining company fit new york opportunity for the right candidate. Vernon-based women’s better contem- seeking A/R person experienced in or- standards. Email resumes to: Only experienced and qualified sales [email protected] porary clothing line seeking an inde- der approvals, credits, collections, ag- people need apply. Please send your pendent sales rep. Minimum 5 yrs ex- ing reports, cash applications and CV in confidence to: perience w/ proven record of growing charge backs. [email protected] the biz and able to book new accounts. Showrooms & Lofts send resume with salary re- Samplemaker/Seamstress Email: [email protected] BWAY 7TH AVE SIDE STREETS quirements to: 5 yrs exp. high end required Great ’New’ Office Space Avail fax: 212-398-7765 or VP of Sales & ADAMS & CO. 212-679-5500 [email protected] [email protected] Merchandising Established Dress company is looking for a senior level individual with a proven track record (min 5 years) in Sales and Merchandising. This position requires excellent analytical, communication, follow up and com- puter skills, plus the proven ability to manage a large sales team. The ideal candidate must have established relationships with stores; and working closely with the designers, be able to merchandise. Experienced and quali- fied candidates (ONLY) can send resumes in confidence to [email protected] FAIRCHILD CLASSIFIED IS NOW SELF SERVICE! To place a print ad, go to www.fairchildclassified.com For online-only recruitment ads, go to wwdcareers.com 16 WWD, TUESDAY, MAY 18, 2010 WWD.COM

Bianca Brandolini d’Adda with Naomi Hot Spots Campbell in Valentino THE PARTY VANITY FAIR Haute Couture. and Gucci held in Cannes on Saturday night in honor of the 20th anniversary of Martin Scorsese’s Film Foundation brought out a galaxy worth of stars. Tim Burton, Pedro Almodóvar, George Lucas, Gael García Bernal, Catherine Deneuve, Meg Ryan, Juliette Binoche and Ellen Barkin all mingled around the infinity pool of the Hôtel du Cap-Eden-Roc in Antibes, overlooking the Mediterranean. Jennifer Lopez held court on the terrace, while and a gaggle of socialites hogged the bar. Campbell, puffing on a Sobranie Black Russian cigarette, was telling a friend that she’s Marc Anthony with mulling moving to Miami in the next two years. Jennifer Lopez in Gucci. Meanwhile, Cuba Gooding Jr., sporting shiny black-and-silver sneakers with his tuxedo, flitted from guest to guest as Pharrell Williams, dressed in denim shorts, chatted up Oliver Stone on the patio before retreating inside from the cold. Josh Brolin, in town with out-of-

competition films “Wall Street: Money

Never Sleeps” and Woody Allen’s “You

Will Meet a Tall Dark Stranger,” made the rounds with his wife Diane Lane, who KEENAN recently signed on for the HBO movie “Cinema Verite” costarring Tim Robbins and STEFANIE

James Gandolfini.

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when Tommy Hilfiger hosts a bash for GAYNO

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Mick Jagger and the Rolling Stones’ CC U G

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loves show business.” Gaynor’s relationship with Mackie started in the Sixties, when he dressed MAD ABOUT MITZI her for her Las Vegas act. She initially requested to work with Mackie’s partner, costume designer Ray Aghayan, but he was busy wardrobing Judy DURING THE COURSE OF A 40-MINUTE INTERVIEW, SHOWBIZ VETERAN Garland for her own variety show. “Mitzi wasn’t too thrilled about that,” Mitzi Gaynor breaks out in no less than 11 impressions: a Russian princess, recalls Mackie with a laugh. Ethel Merman, Mario Batali and a pitch-perfect Marlene Dietrich among “He was this little kid,” recalls Gaynor of Mackie. “I was ready to give them. For anyone familiar with her lengthy career, however, that’s just a him an autograph. I said, ‘My God, your voice hasn’t even changed yet, for fraction of Gaynor’s many guises. On her annual television specials, which heaven’s sake.’ But we’ve been together ever since.” date back to the Sixties and Seventies, she parodied everyone from Doris The pair have been responsible for some of television’s more risqué Day to Rita Hayworth. Tonight, in a one-woman show at Feinstein’s at Loews moments. Gaynor was the first to wear one of Mackie’s infamous nude Regency, the actress-singer-dancer finally gets to play herself. dresses, decades before Cher would famously bare all at the 1986 Academy “It’s about my life,” says Gaynor, 78, of her two-week cabaret, Awards. Meanwhile, her Cleopatra costume from a King Tut medley that “Razzle Dazzle! My Life Behind the Sequins.” “The act is really about was part of her 1978 special “Mitzi…What’s Hot, What’s Not” set off the how I got into show business, my father being a Hungarian cello player censors. “Fashion is all smoke and mirrors, isn’t it?” says Gaynor. “You and my mother a flapper.” She begins to swiftly rattle off the major plot think you’re seeing something, but you’re not seeing anything at all.” points in her 60-year career — dancing with Los Angeles’ Civic Light Doing this new revue, which had an earlier run in San Francisco, is a Opera, plus a Golden Globe-nominated role as Nellie Forbush in the lot like therapy, adds Gaynor. “It’s hard to talk about yourself onstage and 1958 musical “South Pacific” and decades spent headlining her own be sincere about it,” she says, before steering the conversation to her late variety programs on television. husband and manager Jack Bean. It’s here that the bounce in Gaynor’s voice Tonight’s audience will get a decidedly more embellished version of drops a little. “When my husband died in 2006, I didn’t want to be Mitzi events, complete with show tunes (pulled from her own repertoire), not to Gaynor anymore,” she notes. “But [my agent] revved me up and I’m having mention seven costume changes, courtesy of Bob Mackie. “Enthusiasm Mitzi Gaynor such a good time again.” fuels one’s creativity,” says Mackie, “and Mitzi loves performing. She — Venessa Lau