The Inside: Pg. 12 H&M NET SOARS 43%/3 JUNIORS’ SPRING HITS/8 Caught WWD in the Web WWDWomen’s Wear Daily • The Retailers’THURSDAY Daily Newspaper • March 27, 2003 Vol. 185, No. 62 $2.00 List Sportswear Going in Style NEW YORK — The golden age of the jet set may have come and gone, but it still lives on in fashion. That’s especially true at the moment, when movies and books are rediscovering the iconic look of the Sixties and Seventies stewardess. And the junior market offers many an option for young wannabes seeking new heights. Here, a cotton and Lycra spandex corduroy jacket from Lix Jeans with a polyester and rayon satin skirt by Spacegirlz; bag by Kiki Pearl; shoes from Marc by Marc Jacobs. For more, see pages 6 and 7.
CRIOUT What Price Luxury? Brands Go High, Low To Spur Tough Market
By Miles Socha PARIS — If the designer fashion business were a game show, it would definitely be “The Price is Right.” That’s because many of today’s biggest players have been fiddling with their tags, with some introducing accessibly priced items for so-called “aspirational” customers and others raising the bar with exclusive, hyper-expensive baubles. All the changes are stirring sharp debate among retailers, manufacturers and industry consultants at a time when no one See Luxe, Page5 PHOTOGRAPHED BY ROBERT MITRA AT WESTCHESTER COUNTY AIRPORT; MODEL: TAYLOR WARREN/NEW YORK MODELS; STYLED ROXANNE BY ROBINSON-ES MODEL: TAYLOR WESTCHESTER COUNTY MITRA AT AIRPORT; PHOTOGRAPHED ROBERT BY 2 WWDTHURSDAY Sportswear GENERAL Fashion has taken inspiration from the high-flying world of flight attendants ™ 6 — and vice versa. Here are some looks and a mini-history on the subject. Many of today’s biggest fashion houses have been fiddling with price tags, A weekly update on consumer attitudes and behavior based 1 but it’s stirring a sharp debate in the luxury market. on ongoing research from Cotton Incorporated The WWDList: Designers ranked by the number of page views received 12 during the first two weeks their collections were posted online at Style.com.
WWD, THURSDAY, MARCH 27, 2003 WWD, THURSDAY, KEEPING IT CASUAL Helped by reduced losses in the U.S., net profits at Swedish behemoth The new rules for dressing in today’s corporate climate 3 Hennes & Mauritz vaulted 43.1 percent to $118.7 million in the first quarter. EYE: Zandra Rhodes gets set to open her British museum, and parties from Once in a while an acquired privilege finds itself they don’t want to look too comfortable. They 4 Los Angeles to Miami, plus Madonna’s big shoot. curtailed by those in a position of authority. That’s want to look confident and professional, not Classified Advertisements ...... 13-15 not the case with corporate casual dressing. Far frumpy.” Because of this, Gilmore often walks a To e-mail reporters and editors at WWD, the address is from the days where dot-com millionaires fashion tightrope. This spring, for [email protected], using the individual's name. strolled into office spaces wearing wind- instance, she offers denim dresses and SUBSCRIPTION RATES U.S. and possessions, Retailer, daily one year, $99; Manufacturer, daily one year, $135. breakers and sneakers, today, a growing suits as well as cotton/linen blended All others U.S., daily one year $195. Canada/Mexico, daily one year, $295. All other foreign (Air Speed), daily one year $595. Please allow 6-8 weeks for service to start. Individual subscription information: (800) 289-0273; number of employees are choosing to pantsuits (displayed with white T-shirt outside U.S. (818) 487-4526; group subscription information (856) 786-0963. Postmaster: Send address changes to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. spruce up their usual work wardrobes in shells) in bright, sherbet colors. WWD (ISSN #0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional issue every month except July, and two additional issues in April and August, by Fairchild Publications, Inc. an attempt to appear more professional. Part of Gilmore’s job also consists in a subsidiary of Advance Publications Inc., 7 West 34th Street, New York, NY 10001-8191. However, that does not mean they are bringing back the sheep that may have WWD is a registered trademark of Fairchild Publications Inc.© 2003 by Fairchild Publications Inc., a subsidiary of Advance Publications Inc. All rights reserved. willing to give up the comfort of corpo- wandered from the flock. “People here No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage or retrieval system, except as may be rate casual dress that they’ve grown to love are confused by business casual. Is it jeans expressly permitted in writing by the copyright owner. Editorial Reprints: (212) 221-9595 Periodicals postage paid at New York, NY and other offices. – instead, they are reinterpreting it to fit a or a pantsuit? Khakis and a sweater? I Mailed under Publications Mail Sales Agreement No. 517054. Canada Post Returns to: P.O.Box 1632, Windsor, ON N9A 7C9 GST # 88654-9096-RM 0001 Canada Publications Agreement # 40032712 new economy and an altered world. convince them they don’t have to do stan- Printed in the U.S.A. All signed articles published in the paper represent solely the individual opinion of the writer and not those of According to findings by the Cotton dard business casual anymore. They can WOMEN’S WEAR DAILY. ™ Incorporated Lifestyle Monitor , the trend dress up and still look feminine.” For Web site access, log on to www.WWD.com toward dressier casual apparel has had an Although many women may be happy impact on consumers’ attitudes “Casual dressing in the workplace to cast aside the über-casual about what is acceptable to is nowhere near dead, look of the dot-com era, how wear on casual days. But will but it is evolving.” formal they choose to dress is In Brief American offices be seeing a often a function of their age. Ira Livingston LUCKY SHOES: Vernon, Calif.-based Lucky Brand Dunagarees – Cotton Incorporated return to power suits and Jennifer Kasper, marketing is stepping into footwear. The line of denim-driven activewear pantyhose any time soon? Not manager, Federated Merchan- has inked a licensing deal with South River, N.J.-based quite. In fact, according to the Monitor, only 36.4% dising Group women’s ready-to-wear brands, sees a Steinweis Jacobson LLC to produce women’s and men’s of women feel people have begun dressing too casu- difference between younger shoppers and those footwear. Lucky Brand footwear will hit department and special- ty stores for the back-to-school season, featuring five men’s and ally on casual days (down from 42.4% a year ago). who are more established in their careers. six women’s athletic-looking styles in leathers and suedes. The So while dressing up is on the rise, it is not neces- While the latter group is reverting to conserva- looks will also be carried at Lucky’s stores and Web site, lucky- sarily in response to a workplace gone casually over- tive looks from the company’s Alfani line, brandjeans.com. Retail price points will range from $60 to $100. board. Linda DeFranco, creative trend forecaster the former may never have experienced a formal HARRODS NIXES CHICAGO PLANS: Chicago, apparently, is for Cotton Incorporated, sees women in the work- work environment—and never wants to. “INC. not Harrods’ kind of town. The London department store has all force as having more options than men in terms of [Federated’s line of sportswear aimed at women in but scrapped plans to open a unit in the Windy City — what what’s acceptable to wear. “There haven’t been very their twenties and thirties] is becoming more laid would have been its first in the U.S., a company spokesman said. back,” she explains. “This customer’s work He said Harrods’ owner, Mohamed Al Fayed, failed to see eye-to- many guidelines in terms of what’s appropriate to eye with developers for Chicago’s historic State Street shopping wear to work,” she points out, leaving women the wardrobe is probably not suits five times a week. area. Al Fayed had wanted to take on a larger role in the devel- freedom to dress in almost anything from slacks to She’ll buy a denim jacket over gabardine,” says opment — in the form of a proposed hotel and real estate proj- sundresses—something they quite appreciate. Kasper. “Denim is blowing out of the stores.” Also ect — but was offered a “fairly modest retail proposal,” in the end, the spokesman said. “Further involvement in the project As DeFranco points out, women also dress up for at the top of her shopping list: “great black pants” looks exceptionally unlikely,” he added. “The developer seemed occasions outside of work citing the popularity of that she can wear with a variety of tops. “This unaware of the fundamental brand value associated with clothing that does double duty from going to the customer has an expectation that her wardrobe is Harrods, and this was reflected in [the proposal].” office to going out at night. “In the summer you go going to be versatile.” ITALY ON MADISON: The Italian Trade Commission plans to out more so you’ll wear something a little dressier to In fact, 86.5% of women still find casual days kick off an 11-day promotional program with retailers on upper work.” A simple way to make an impact without appropriate in American workplaces, according Madison Avenue in Manhattan tonight. The ITC has set a ribbon- sacrificing comfort: what DeFranco coins the “one to the Monitor. cutting ceremony on Madison between East 65th and 66th dressy item plus one casual item” rule of thumb. Asserts Ira Livingston, Cotton Incorporated Streets to mark the program’s beginning. Called “Passport to Italy,” it gives consumers a chance to win Italian prizes, from For Brooks Brothers, the senior vice president, con- trips to fashion accessories. Passports for the program are avail- secret to casual success lies in Have People Begun Dressing sumer marketing, “Casual able at 32 participating retailers and in the March 17 issue of beautifully tailored, quality Too Casually On Casual Days? dressing in the workplace is New York magazine. The promotion is to end April 6. casual clothes with crossover nowhere near dead, but it is 01Q3 02Q3 Difference MO’ MONEY: Bluefly Inc. has renewed and expanded its se- appeal. “We’ve developed a Yes 42.4% 36.4% -6 pts. evolving.” What it does cured revolving credit facility with Rosenthal & Rosenthal Inc., couple of ‘lifestyle’ pieces No 56.8% 61.7% +4.9 pts. lack, according to Liv- an independent financial services and factoring firm. Its avail- that are dressed up for work ingston, is a sense of self. able financing has been increased to roughly $4 million from $2.5 “This is a great opportunity for retailers, and million. The deal was secured by Bluefly’s inventory and a letter but can also be worn on weekends,” explains Lisa of credit from an affiliate of Soros Private Equity Partners. The Flynn, senior director of the women’s division for department stores in particular,” he says, “to rede- credit facility entitles Bluefly to certain credit accommodations, the company. She cites Brooks Brothers’ stretch fine corporate casual and become ‘the source’—the including the right to obtain loans, factor-to-factor guarantees pant as an example: “Women can wear it with a experts on casual dressing.” and letters of credit issued in favor of Bluefly’s suppliers. blazer, a T-shirt, a sweater set – it covers a broad And with so many definitions of business casual spectrum of functions.” The same goes for the spe- emerging, the field is wide open for those savvy few WWDStock Market Index for March 26 cialty retailer’s non-iron shirts, a “phenomenal” who know how to play the game. success, bolstered in part by feminine details as well Composite: 102.24 Broadline Stores: 103.68 Softline Stores: 97.27 as pretty colors. This story is one in a series of articles based on findings Balancing professionalism with style and com- from Cotton Incorporated’s Lifestyle Monitor™ fort is a tactful endeavor indeed. Just ask Mil- tracking research. Appearing Thursdays in these pages, each story will focus on a specific topic as it relates to the -0.06 0.16 -0.55 waukee-based designer and shop owner, Heidi American women’s wear consumer and her attitudes Gilmore. An F.I.T. grad specializing in dressy Vendors: 100.77 Textiles: 90.12 and behavior regarding clothing, sportswear cut from Italian fabrics, Gilmore appre- Index base of 100 is appearance, fashion, fiber selection and ciates the art of striking this delicate balance. keyed to closing prices many other timely, relevant subjects. ® of Dec. 31, 2002. “Women here are very interested in comfort, but -0.58 -8.35 3 WWD, THURSDAY, MARCH 27, 2003 LAZAR/LADN/WIREIMAGE JOHN BY PHOTO BRODY “The key thing is we believe “This was perceived as a bit of bit a as perceived was “This Ericksen characterized Amer- “The American operations are Ericksen also acknowledged “These will be serviced by Asked about March sales and gunning is it said company The were shot in New York several weeks were shot in New York the ago. In addition to appearing in ads, Brody will make appearances behalf and be outfitted on Zegna’s He in Zegna for other major events. wore Zegna to the Oscars. Zegna is a very intellectual brand…with a lot of meaning. Adrien is such a serious actor and his role in ‘The Pianist’ was so amazing. It moved all of us,” said Lipman. February February due to weath- cold lingering and storms a series of er in the Northeast. Pressed by analysts for specifics, losses he in said the U.S. about narrowed to $10.8 million from million in $14.1 the quarter, and that markdown levels were reduced versus a year ago. The company set a breakeven target U.S. market for the full year. for the a disappointment because H&M by breakeven already had in the some fourth reported quarter of 2002,” noted and retail fashion analyst Sagra Maceira de Rosen London. at “We believe J.P. breakeven Morgan for the full year is achievable.” in ica as an market, important with two new expansion units bow- ing this month in the Washington area alone and an additional nine planned for the second quarter. on the “Overall, right we are track,” not verypointed he with the situation. It’s still disap- said. an improvement over last year.” that H&M’s foray into four new markets this year Czech — Republic, Poland, Portugal operating in result would — Italy and losses of about $10.8 million to $21.6 million, but ments would that not be as invest- heavy as in the U.S. losses and swelled Spain, to where $64.8 million in 2001. as much as neighboring markets,” he setup.” full a making not said. are “We whether there was any indication related effect” so-called“CNN a of to the Iraqi Ericksen war, replied: “It’s a short period so far, but we have not found anything yet that we could call a war effect.” for like-for-like sales growth of 3 to 5 percent in 2003, and that added favorable currency fluctua- tions would allow prices by about it 2 to 3 percent. to lower Adrien at Sunday’s Oscars. Brody will . But Adrien , a fellow Zegna hit David Jodie Kidd Following in the Steven Klein Tarquin Southwell Tarquin Fast-fashion continues Fast-fashion , chairman of Lipman, won the Oscar for Best Actor Helped by reduced losses in And the Swedish firm said quarter the in profits Operating “Our performance remains of ahead well were results The any seeing not clearly “They’re Ericksen acknowledged that JODIE KIDD TO POLO: father and brother, footsteps of her polo who are both professional model players, British in the Polo represent England Championships in World Women’s Although she has only been July. playing for five years, the English team clearly pegged her as a winner. team Kidd will play on a four-woman no at the tournament in Ascot, and doubt be cheered on by her boyfriend, polo player whom she met while stables. mucking out at her brother’s PRIME OF ADRIEN BRODY: the jackpot this week when Brody for his role in “The Pianist.” Brody wear is featured in the men’s spring ad campaign, company’s along with other actors, and has signed a six-month contract to fall appear exclusively in Zegna’s campaign, shot by Zegna isn’t capitalizing on Brody’s winning the gold statue: Lipman said the fall ads ad agency, Zegna’s Fashion Scoops Fashion By Miles Socha — PARIS to race ahead. the U.S., net profits at behemoth Swedish Hennes vaulted 43.1 percent to $118.7 mil- & Mauritz lion, or 14 cents a share, first quarter in ended Feb. the 28. This 10 or million, $82.9 with compares cents a share, a year ago. that Wednesday its international expansion would continue at a brisk pace, with about 110 stores slated to bow in 2003, 47 of them At in the the end second quarter. of the H&M first operat- quarter, ed 849 stores in 14 countries. increased 41.5 percent to year- the in $119.4 from up million, $168.4 per- 12 advanced Sales period. ago cent to $1.37 billion, up from $1.22 billion a year ago. Dollar krona Swedish figures from converted are at current exchange. strong,” H&M chief officer Rolf Ericksen executive said during a conference call, that emphasizing improved full-price per- selling 54.4 to margins gross boosted cent of sales from 52.9 percent in the year-ago quarter. He attrib- uted the gains to “higher fashion sharper inventoryaccuracy,” lev- els and improved delivery flows. market expectations, but lower- than-expected sales growth February in of 10 percent the stock, which fell dented 4 percent in trading Wednesday to $19.45 on the Stockholm Bourse. like-for-like sales February,” noted growth Tony Shiret, analyst in at Credit Boston in London. But overall, he Suisse First said the “fabulous” figures in the quarter reflect a big improvement in margins and suggest continue. should growth pendous” its “stu- the U.S. market remains a chal- in hit a took sales that and lenge, Trimmed U.S. Losses U.S. Trimmed Net H&M Boost Help The agriculture agreement is As reported, Saks Inc. and J.C. Lacy said that it was likely some The ceo also emphasized that Although such a move frees a Retailers including Target Robert Passikoff, president “Whether the economy is Passikoff noted that one are too wide and agricultural negotiators will most likely miss the deadline, which could delay negotiations in other sectors and push back the ambitious Jan. 1, 2005 deadline for drop- ping all quotas on textiles and apparel. Trade diplomats from the 145-member body have been deadlocked for months over how to liberalize agriculture trade. seen by many as the key to a wider round of trade negotia- tions, which would include much anticipated talks on tariff reductions for industrial prod- ucts, including apparel and tex- tiles. Large agricultural export- ing countries like Australia, the U.S. and China claim the current proposal on agriculture does not go far enough, while importers like the European Union and Japan claim it cuts too deep. Penney Penney are among the retailers that have divested themselves of their credit card portfolios. With an eye toward increasing its fi- nancial flexibility, Saks last year sold the majority of its private label credit card accounts and balances to Household Inter- national for $1.4 billion. aspect of credit operations “would be retained by Sears.…An ele- ment of our expense [is] going to the support of the credit business” and the company would similarly provide for that going forward. the profitability of the sale will generate free cash flow above the current dividend requirement, now at 92 cents a share. “We are not capital or cash-flow con- strained,” he pointed out, adding that the decision to review opera- tions was unaffected by the re- cent one-time charge in connec- tion with the credit card business. retailer to focus on retailing and removes some of the risk that comes with credit operations, par- ticularly in a tough it economy, also deprives retailers of some- thing of a fiscal umbrella in the event of poor store-related results. and Kohl’s continue to run their own credit card businesses. their However, operations are a much smaller part of total oper- ations compared with those of Sears, financial sources noted. of Brand Keys, a consumer re- search firm, observed that while proprietary credit card opera- tions can be a big business, re- tailers really need to separate the credit business from the re- tail side of operations. good or bad, proprietary credit cards are the ones that get paid last. When times are tough, it is the minimum payments on the Visa, MasterCard and American Express cards that get paid first. This was what happened to Spiegel where the chargeoffs put them in the tank,” he said. problem for retailers who own their own operations is the risk of not providing for enough re- serves to cover the chargeoffs. ” He said the EU must move Johnson said: “The deadline is Many critics claim the gaps In last year’s final op- quarter, Jeffrey Hornstein, managing “The strength of the business He told analysts that while The ceo said that lately, be big obstacles to reaching an agreement on key points such as tariff reductions on agricul- tural products and export sub- sidy reductions. forward this summer on its re- forms to sever the link between production and subsidies, which he claimed is essential to moving the WTO negotiations ahead. The Japanese, he claimed, need to show more of a commitment to liberalization and market access. Japan fiercely protects agricul- tural products such as rice with astronomical tariffs, although it relies heavily on food imports. a few short days away and we have a long way to go. A number of are not members, ready frankly, to move forward or can’t move for- ward to meet the obligations.” third-party providers to run the business” who can provide both “economies of scale and a high level of customer service.” erating income in Sears’ retail unit rose 9.7 percent to $662 mil- lion as sales, plumped up by the acquisition of Lands’ End, ad- vanced 2.8 percent to $9.73 bil- lion. Operating income on the credit side fell 14.8 percent, to $363 million, on revenues that rose 4.4 percent to $1.39 billion during the 13-week period. An up- ward adjustment in Sears’ credit reserves and related charges dur- ing the quarter had led to the first major crisis of Lacy’s tenure, which began in December 2000. director at Peter J. Solomon Inc., said that the divestiture of the credit operations “makes sense because the financial markets had never known whether to value Sears as a financial compa- ny or as a retailer. Sears felt un- dervalued in the market and the company is probably correct. By unlocking the value of the credit card business, Sears can get Wall Street to focus on the retail oper- ation. They are making what is considered a smart move.” billion in its Gold MasterCard receivables. The business gener- ated more than $1.5 billion of comparable operating income and is on track to deliv- last year, said. Lacy year, er on plan this and broad customer base create strategic value to a number of noted. potential buyers,” the ceo credit is an integral part of its business, “owning the business is not critical.” there’s been shift in the number of retail credit providers, unlike years ago when Sears entered the business. most “Today, re- tailers have a relationship with — Jeffrey Hornstein, Peter J. Solomon Inc. Solomon J. Peter Hornstein, Jeffrey — The chief agri- Sears, Roebuck &
By unlocking the value of the credit card credit the of value the unlocking By Allen Johnson, chief agricul- WTO agricultural negotiators Lacy said that Sears’ Credit Reports circulated Wednesday Reports In a conference call with Wall Shares catapulted $2.69, or Sears said it was “evaluating “ business, Sears can get Wall Street to focus to Street Wall get can Sears business, making are They operation. retail the on move. smart a considered is what tural negotiator for the Office of the U.S Trade Representative, acknowledged it is a “difficult time,” but said the U.S. is con- tinuing to push hard for results. Johnson said the European Union and Japan are proving to are engaged in their last sched- uled session of global agricul- tural reform talks this week, at- tempting to forge a blueprint ahead of a March 31 deadline. By Kristi Ellis Kristi By WASHINGTON — cultural negotiator for the U.S. said Wednesday that World Trade Organization members must overcome significant obsta- cles before the 145 nations can reach an agreement on agricul- ture, which is crucial for the suc- cess of the broader negotiations. U.S.-WTO Nearing AgriculturalDeadlineNearing U.S.-WTO and Financial and ProductsFinancial business manages the eighth largest cred- it card portfolio in the U.S., with $30.8 billion in card receivables at the end of 2002 and 25 million active accounts. The business also includes the largest nation’s in-house proprietary card port- folio with $18.4 billion in its blue Sears Card receivables and $12.4 that a sale of the entire credit card operation could fetch be- tween $6 billion and $7 billion. a Lacy, veteran of Sears’ credit operations, declined comment, except to say that the retailer “expected to receive an appro- priate premium” over book value for the business. He added that one option being explored is the sale of just the MasterCard unit. Sears Gold Street analysts, chair- Alan Lacy, man and chief executive officer, said, “The market has had diffi- culty in properly valuating Sears’ unique combination of as- sets. A sale would allow us to un- lock the tremendous value and earnings power of these assets.” ing Wednesday. Volume was near- Volume ing Wednesday. ly seven times its daily average. 12.5 percent, to close at $24.14 in New Stock York Exchange trad- strategic alternatives” so it can focus on its profitable core re- tail and related services busi- ness. The company expects to fi- nalize a transaction during the second half of fiscal 2003. By Vicki M. Young M. Vicki By NEW YORK — Co.’s decision to put its credit card operations on the block res- onated with investors Wednesday, but is certain to turn up the heat on the firm to make its somewhat tarnished retail operations shine once again. Sears’ Moves Shift Focus to Stores to Focus Shift Moves Sears’ 4 Rhodes Zandra Rhodes Scholar LONDON — Zandra Rhodes may look Blaine perky with her flaming pink mane, Trump WWD, THURSDAY, MARCH 27, 2003 WWD, THURSDAY, matching lipstick and coordinating eye® caftan, but her reality is far from rosy. “It’s sucking the life blood out of me,” says Rhodes of her latest project, the Fashion & Textile Museum slated to open here in May. I want it to be a place “where fashion doesn’t feel so precious. ” — Zandra Rhodes The Carolina says. In addition to the Rhodes archive, the Herreras Jr. “I should be spending my time doing things museum boasts 10 Clark and 30 Muir garments. and Sr. like traveling to Paris, chatting with Karl,” she Gity Monsef, the museum’s creative director, is says, the tiny seashells in her hair tinkling as she planning a Rhodes retrospective “at some point,” talks in the sunny top floor of her south London and hopes to do a Halston exhibition. headquarters, with its rainbow-striped floor and The museum was designed by Mexican Frequent Fliers caftan-clad mannequins. “Instead, I’m trying to architect Ricardo Legorreta, and is his first “Well trophy season is finally over, that we get this project off the ground.” project in Europe. Rhodes, who spends her time can be grateful for,” said Tom Hanks, as he Rhodes has only herself to blame for this project, between London and San Diego, discovered him and wife, Rita Wilson, arrived to co-host which started after some existential ponderings. “I during one of her regular trips to California. “I Saks Fifth Avenue’s benefit dinner for realized that so many famous British designers — love his use of color and his wonderful, simple Cedars-Sinai cancer research, which raised like Ossie Clark and Jean Muir — were dying on us, shapes,” she says. “He also happens to be $1.5 million. But the duo’s co-host, Jennifer and that there should be some permanent record of incredibly charming.” Garner, was stuck on the “Alias” set. “Well, British fashion. Fashion is something the whole The entrance, known as the Grand Pink Foyer, she is the hardest woman in show business Stella world is interested in,” says the designer, now 63. lives up to its name. It has a swirly mosaic floor Stella — I mean, the hardest-working,” quipped Seven years and $4 million later, Rhodes is made by the Australian terrazzo artist David McCartney Hanks to Scott Foley, Garner’s husband. preparing to open the museum, a 5,000-square- Humphries and the design is based on one of Event chairs Kate Capshaw and Jamie foot space attached to her headquarters and Rhodes’ wiggle motifs. The electric blue Fashion Tisch greeted guests Lisa Kudrow, Nia workshop that will accomodate exhibitions, Archway leads to the split-level Grand Gallery, Vardalos, Jeffrey Katzenberg and honoree educational programs and the odd cocktail party. which is spare, with custard-colored walls and Stella McCartney, who lost her mother, “I want it to be a place where fashion doesn’t feel industrial lighting. Meanwhile, the building’s Linda, to cancer in 1998. “It’s a rude awak- so precious or rarefied,” says Rhodes, “where exterior is bright orange, adding a jolt to ening, suddenly having to look after your- people can understand the contribution that fashion Bermondsey Street, a narrow cobblestone road self,” said McCartney. “The one positive makes to the culture and character of society.” straight out of a Charles Dickens novel. thing that came out of this is that I learned For the first exhibition, “My Favourite Dress,” The museum will put on three shows a year, how to do that.” McCartney, who brought Rhodes asked 70 fashion designers, including and there are no plans for a permanent along her fiancé, Alasdhair Willis, looked tan Valentino, Giorgio Armani, John Galliano, Oscar de la exhibition, as Rhodes believes it isn’t good for and radiant after almost a week out West. Renta, Donna Karan and Thierry Mugler, to choose a clothing to be on permanent display. Her team, Also on the West Coast last week, favorite dress from any of their own collections, and however, is working on a digital fashion and Graeme Black showed San Francisco describe the reasons behind the choice. Rhodes textile archive where students will be able to ladies like Tatiana Sorokko and Alison herself chose a 1974 dress in Pernod green. “It was a access the museum’s designs. The museum will Spear his latest Salvatore Ferragamo col- dress that I know for a fact Jackie Kennedy shared also have a library and lecture room, and has lection, then hit the cable cars. with her sister,” says Rhodes with a giggle. already begun children’s educational programs. Meanwhile, in Miami, Carolina Herrera Although 3,000 original Rhodes garments along “I started work on it in 1997 when no one was and her daughter Carolina Jr. welcomed with her sketch books and silk screens are now really paying attention to my designs,” Rhodes says such guests as Pauline Pitt, Emilia Fanjul part of the museum’s permanent collection, the with a sigh. “Little did I know, my work would take Pfeifler, Melanie Charlton and Kate designer took a communal approach to the first off again, and I’d be so busy. Like life, it’s either Gubelmann, to the opening of her first CH show, “because I didn’t want the museum to be feast or famine.” Carolina Herrera store in the U.S. Herrera M GIBBONS M thought of as an homage to Zandra Rhodes,” she — Samantha Conti brought a touch of elegance to a town be- sieged by college students on spring break. And Blaine Trump, for one, couldn’t Rita Wilson have been happier to escape South Beach inin StellaStella for the evening. “Try doing yoga with McCartney. house music blasting all around,” she said.
A video still from “X-STaTIC PRO=CeSS,” a collaboration between Steven Klein and Madonna.
SHOOTING STARS: Some stars just show up on the set. Not Madonna, who spent months e-mailing Steven Klein in planning a shoot for W, WWD’s sister publication. Their strange and wonderful collaboration, depicting Madonna al- ternately contorted and done up as a New Age empress in her baroque best, led to a 44-page portfolio in the April issue. “I found Madonna to be everything people think she’s not,” said Klein, who has other projects with Madonna in the works. “She’s very intuitive about her work.” Still, Madonna is always controversial, and the disquieting images she and Klein created stirred up plenty. “The provocation comes from my pictures and who she is naturally, without any effort,” said Klein. Tatiana Jamie Tisch And the duo’s collaboration goes on. Tonight “X-STaTIC PRO=CeSS” opens at Deitch Projects on Wooster Street Sorokko in Emanuel and includes three video works and two photographic animations that grew from the one-day shoot to be shown in- Sorokko in Emanuel side organic architectural structures created by New York architectural firm LOT/EK. and Ungaro and Although Madonna played Fellini music while on set, remixed sounds from her new album, which comes out Graeme Lisa Rinna April 22, will accompany the exhibit. Black inin Tuleh.Tuleh. MADONNA VIDEO: STEVEN KLEIN; RHODES: EDWARD HILL; SAKS PARTY: DONATO SARDELLA; HERRERA PARTY: ROBERT CLARK; FERRAGAMO PARTY: TO PARTY: FERRAGAMO CLARK; ROBERT PARTY: SARDELLA;HERRERA DONATO PARTY: SAKS HILL; EDWARD RHODES: KLEIN; STEVEN VIDEO: MADONNA 5 Luxe Firms Play Price is Right THURSDAY,WWD, 2003 27, MARCH Continued from page one wants to confound already skittish consumers with Gucci crocodile bag sticker shock — or cheapen brands at a delicate time for luxury. The sector’s already trying situation has been made even more delicate by the war in Iraq, which has further eaten into global travel and caused many consumers to rein in their spending on any- thing but essentials. Nonetheless, who would be the first contestant in fashion’s new game show? Tom Ford, come on down! You might accuse the dashing Gucci Group creative director of a tendency to overbid — and you would be right. He took the Gucci brand into new price stratos- pheres last fall by introducing made-to-order hand- bags that run from $1,900 up to about $16,000. The move was the wrong answer for the company at the time, and analysts even suggest the strategy dented Gucci’s leather goods sales. Yet Ford defended the move up the price list. “We had planned something strategically, which I still believe was the right thing for the long-term value of the Gucci brand,” the designer argued. “But maybe given what’s happening in the short term, it was ill- timed. We were starting to lose the top-of-the-pyra- mid customer at Gucci and…we did something very calculated: We went back in with custom-made shoes, custom-made bags, things with more expensive skins, more expensive detailing, and we really lifted the price point of the collection.” Gucci Group chief executive Domenico De Sole agreed. “Maintaining and growing this image is clear- ly the correct long-term strategy for our brand,” he said. “Unfortunately, we moved in this direction pre- cisely when consumers’ disposable income and anxi- ety led them to cut back and focus on more economi- cal and entry-level-priced products.” Not that high prices are necessarily a bad thing. High-end retailers interviewed during the latest round of collections said price is rarely a deterrent for luxury basket,” or the average amount spent by consumers increasing the size of their consumer base,” he customers — as long as the product is right. “Customers in a single visit, also rose last year. He noted that cus- explained. “But when there is an economic recovery, only get upset with us if we don’t have the right fash- tomers even have the option of ordering handbags these companies will see a downgrade of their brand ion,” said Ron Frasch, chairman and chief executive from its couture atelier. positioning. I think it is very negative.” officer of Bergdorf Goodman. “It has to have Still, he defended the advent of opening-price items Even in Japan, battered by a decade-long reces- innovation and distinctiveness.” as crucial to attract and engage young customers who sion, companies including Hermès, Bulgari and But complicating the picture for want a piece of its brand. “We’re preparing them to Louis Vuitton continue to raise prices. Yves Carcelle, American retailers buying fall collections buy the real thing,” he said with a chuckle. “Hermès chief executive of Louis Vuitton, noted that in Japan, is the weak dollar versus the euro, which does it. Vuitton does it. The lower-price products Louis Vuitton items priced over $500 sell better than threatens to make European goods much don’t contribute a lot to the total business. It’s those priced less. “We believe the strategy of lowering more expensive. “Next season is not the for aspirational customers, to bring them into prices in a crisis is the wrong solution,” he said. time to see increases of 20 percent,” said the store and to convert the customers to the But Chiara Tirloni, an analyst with UBS Warburg, Anne Stordahl, senior vice president brand.” But Toledano stressed that even cited Tiffany as one example of a brand that has man- and general merchandise manager at affordably priced items for the young set aged to offer a vast price range of items without losing Neiman Marcus, referring to roughly must have all the “quality and details” its luster. “Tiffany demonstrates that a low price point how much value the dollar has lost over of more expensive items. doesn’t necessarily mean losing luxury status,” the past six months. “We’ve been push- Rita Clifton, chairman of Tirloni said. “It’s all in the execution. These brands ing [suppliers] strongly [so] that we Interbrand Corp., said fattening have many stores all over the world. They have to don’t see increases. If a customer the offer at either the top or adopt product strategies that keep attracting cus- doesn’t see the apparent reason why the bottom of the price tier tomers, increasing store traffic and generating sales.” [the price] went up, there’s no moti- is not necessarily a haz- And Majed Al-Sabah, owner of the luxury empori- vation to buy. People are not in the ardous policy. For um Villa Moda in Kuwait, said he spies great poten- mood for exorbitant and superfluous example, she said, tial for selling low-ticket items — key chains, cell- prices.” Giorgio Armani does a phone straps and the like — even if many brands Stordahl stressed that she does- “very good” job in resist for fear of diminishing their snob appeal. His n’t advocate cuts across the board, subtly signaling to enthusiasm hasn’t been diminished by the war in but added with a grin, “I’ve never Dior toile ‘Saddle’ bag customers that Iraq; Al-Sabah all along has insisted that the war, in seen a customer complain if we Emporio Armani and the end, will only be good for business because it will give them true value.” Armani Jeans are “a ease the region’s political uncertainty. He already has But how low can luxury go in different type of plans to open another Villa Moda in Kuwait and even terms of price, before it starts to Armani” from the top talks of opening one in Baghdad one day. cheapen the brand image? line, but still positioned “I think they [brands] are underestimating the cat- To be sure, many luxury bou- at the upper end of the egory. My customers, they buy items like that in bulk,” tiques have some surprisingly sector in which they com- he said. “One of the exceptions is Dior. To me, they affordable items woven into the pete. Likewise, affordable are absolutely clever because they diversified [their mix. Yes, Hermès has a crocodile products at Dior are targeted at a price range].” handbag that retails for more than “younger, racier” customer who is Andrea Ciccoli, vice president of Milan-based con- $100,000 at its Paris flagship, but still spending more for a like product sultancy Bain & Co., warned that fashion houses that there are also $37 coin dishes and at Dior than she would elsewhere. produce cheaper versions of hit items may devalue fruit-shaped key rings for $75. Of course, everything has its limits. their integrity. However, he allowed that accessible Likewise, Christian Dior has $175 “If people are hearing more about your items like T-shirts can work if they are fun, fashion- versions of its famous “Saddle” hand- brand from the bottom end rather than the able and grab the customer’s attention. bag and $55 silver earrings. Several top end, that’s a recipe for taking a brand “It’s the impulse buy that is responding best in this luxury analysts noted the recent prolif- downstairs,” Clifton warned. market,” he said. “What the customer needs is fresh, eration of affordable logo items at such Ironically, could companies that energized their exciting things, but not necessarily at high prices.” stores as Fendi, Gucci and Prada. brands by reversing the freewheeling licensing of He believes the key is being innovative and fashion- Some luxury executives are defensive about the yore be heading down that same path themselves? able with cheaper products, but staying “consistent charge that they have gone downmarket with demo- Bergdorf ’s Frasch called it a “huge mistake” for a with the brand image.” cratic prices. “Prada has never used the approach of luxury brand to sell and produce logo bags and other De Sole agreed that consistency is the golden rule offering lower-priced products to reach more cus- low-cost items. “Most [luxury houses] have to do it, when it comes to pricing, recalling that during the tomers,” a company spokesman said. “Even the high because they’ve opened up so many stores around the Asian crisis in the late Nineties, the decision to hold tech nylon items have been introduced and treated as world, and you have to sell something,” he conceded. firm on prices served the company well. luxury items.” “But I think at some point it will catch up to them. We And even if the United States is in a prolonged Christian Dior is probably the most democratic won’t be buying those entry-level price points.” economic downturn and a war, he noted, “I don’t purveyor of luxury, given its recent emphasis on Armando Branchini, vice president of consulting think simply cutting prices is going to fix it. Tom feels “J’Adore Dior” T-shirts, which retail for about $145, firm InterCorporate in Milan, agreed that fashion very, very strongly that we have to have the highest and low-cost accessories like denim pocket squares companies trying to generate as much revenue as quality. It’s not just an issue of pricing. At the end of and wrist cuffs. But Dior president Sidney Toledano possible in tough times may ultimately pay the price the day, we want to offer a very good value.” noted that the average price of a Dior handbag actu- in terms of their image. “In the last 10 years, these —With contributions from ally went up in 2002, to $600, and that the “average companies have made their growth strategy out of Amanda Kaiser, Milan 6
NEW YORK — In Hollywood’s latest high-flying satire, “View From the Top,” Gwyneth Paltrow, a leading Hollywood fashion maven, idealizes the life of the flight attendant. She gets her start on a low- rent commuter shuttle and works her way up to the international first-class routes, the pinnacle of success in the rarefied world of flight service. Her uniform reflects her career, which starts at skintight, breast-baring outfits then moves on to an ultrachic, fitted wool suit with Prada-type shoes. Spielberg’s “Catch Me if You Can” similarly fetishized stewardess’ frocks. Oh, right, flight attendants. Call them what you like, the name, just like their image, has changed radically over the years. The commercial aviation industry developed out of the U.S. Air Force, and the image of the cabin attendants followed suit. The original eight “Airline Hostesses” who worked for Boeing Air
WWD, THURSDAY, MARCH 27, 2003 WWD, THURSDAY, Transport in the Thirties, a forerunner of United Airlines, were all nurses and were outfitted in Florence Nightingale-esque capes. But the airline industry didn’t find a fully articulated style until the Sixties when Mary Wells, the first woman to run her own ad agency, was hired by Braniff Airways head Harding Lawrence (he eventually be- came her husband). She commissioned designer Alexander Girard to update the terminals and Emilio Pucci to design the uniforms. Together, they created an Op-Art fantasy world replete with all the saccharin col- ors of the rainbow. And Wells was none too subtle about making the con- nection between flight and sex. Stewardesses were outfitted in brightly colored Pucci designs and their strict physical requirements (weight, height, age and even marital status were dictated in those days) made CComeome FFlyly WWithith MMee
From left: Esprit’s polyester suit and rayon top. Roxy Quiksilver hat. Hot Kiss’ polyester jacket and skirt; Esprit’s polyester top.
sure that tired businessmen had some pretty eye candy for their flights. Pucci designed Braniff ’s uniforms for the next nine years and created six distinctive styles. The most famous were advertised as the Braniff “Air Strip.” The outfit consisted of several layered com- ponents that were removed (or in some cases, added to) during the flight. The stewardess greeted passengers in a reversible wool coat accessorized with a pillbox hat and Pucci print scarf. By flight’s end, the stewardesses had stripped down to their tunics and culottes. Braniff may have been the leader in flight design, but soon other airlines were outfitting their stewardesses in fashion-forward gear, as well. Over at United, Jean Louis, taking a cue from Norman Norell, designed jumpers to be worn over knit blouses with black accessories and a faux-fur hat. The girls at TWA had a youthful look: V-neck sweater, striped blouses and capes and boots pulled together with a miniskirt. Southwest Airlines went so far as to dress their stews in go- go boots and orange HotPants. Of course, the French were part of this fashion movement, as well. Air France hired Christian Dior and Cristobal Balenciaga in the Sixties. Pierre Cardin, Mary Quant, Valentino, Oleg Cassini and Evan-Picone also designed uniforms. In contrast to Pucci’s bold, exuberant style, Halston’s muted earth- tone palette became Braniff ’s new look in 1977. Perhaps in deference to the weakening economy and the oil crisis, uniforms in this era took on a more somber and minimal mood. And when the airline industry was deregulated in the Eighties, air travel became more and more like bus travel. Airlines went unisex and back to military-inspired uniforms. While TWA went high end by hiring Ralph Lauren, Delta and US Air asked uniform manufacturer Greif to create their outfits. But perhaps glamour and sex appeal will find a place again in the air. Christian Lacroix was recently commissioned to design Air France’s uniforms and British Airways gave Julien Macdonald a call. Also, two books, one a rerelease of the popular Sixties paper- back, “Coffee, Tea or Me,” chronicling the wild adventures of two fictitious stewardesses, and “Come Fly With Us: A Global History of the Airline Hostess,” will hit bookstores shortly. Or maybe the trend will be that of the new Hooters Air, which re- cently took to the skies with Hooters girls working alongside the From left: Juicy Couture Jeans’ cotton jacket and skirt; Rampage’s polyester sweater. Buzz by Jane Fox bag; Marc regular flight attendants. So much for the jet set. by Marc Jacobs shoes; Dickies’ cotton jacket and shorts; Lucy Love cotton halter, Ro bag; Stuart Weitzman boots. — Roxanne Robinson-Escriout
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