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A New Direction

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A New Direction PLUS: A closer look at the manufacturing woes in China’s A NEW Pearl River Delta. PAGE 6 DIRECTION LVMH HAS TAPPED THE OPENING CEREMONY DUO OF HUMBERTO LEON AND CAROL LIM AS CREATIVE DIRECTORS OF KENZO. PAGE 3 OVERSEAS EXPOSURE Kellwood Mixes It Up With Scotch & Soda By LISA LOCKWOOD WHEN MICHAEL KRAMER WALKED INTO SCOTCH & Soda’s fi rst U.S. store in Manhattan’s SoHo neigh- borhood, he was blown away. “I had a coronary. I was ‘Oh my God, the product is amazing,’” said Kramer, TUESDAY, JULY 12, 2011 ■ WOMEN’S WEAR DAILY ■ $3.00 president and chief executive offi cer of Kellwood Co. “I called them and they weren’t for sale, but I just WWD kept banging on their door,” he said. After six months of negotiations, an affi liate of Sun Capital Partners and Kellwood reached a deal Monday to acquire the Amsterdam-based fashion brand. “They are true designers that keep innovating,” said Kramer, noting the deal is expected to close next month. Terms of the private transaction weren’t disclosed, and the Scotch & Soda founders and man- agement team will continue in their respective roles. Kramer said Scotch & Soda’s business generates wholesale volume of 250 million euros, or $350 mil- lion at current exchange, and represents Kellwood’s biggest and fi rst international acquisition. “It’s huge and it’s hugely profi table,” Kramer said. Begun as a men’s wear label, Scotch & Soda has expanded to include a women’s collection called Maison Scotch, a boys’ collection called Scotch Shrunk, a girls’ collection called Scotch R’Belle, and its most recent venture, Amsterdams Blauw, a high- profi le denim collection. Kramer described the product as having a “cool, hip vibe.” Having previously worked at Abercrombie & Fitch and Apple, Kramer said, “I didn’t think I’d fi nd a brand I loved as much as those, and I found it.” “Scotch & Soda is one of the coolest, most sought- after brands today, and I couldn’t be more excited Rare to have them partner with the Kellwood team,” said Kramer, who has been actively building a stable of contemporary brands as he changes the complex- ion of Kellwood. After acquiring Vince in 2006, Kellwood bought Adam and Rebecca Taylor within the past year. Since acquiring these contemporary SEE PAGE 16 BirdJean Paul Gaultier, one of Paris’ proudest IN WWD TODAY peacocks, fl aunted his fi ne feathered side with his couture collection. Some looks had a dainty Bikkembergs dusting of plumes; others, like this painterly Bought PAGE 2 FASHION: bustier dress, were bright and bold. For more Designer Dirk of couture’s haute plumage, see pages 4 and 5. Bikkembergs, known for his consistent celebration of male athleticism, has sold his brand to L Zeis Excelsa. A New York Preview PAGE 8 TRADE SHOWS: A look ahead at a full plate of trade shows set for the city next week. Italian Contagion PAGE 2 FINANCIAL: Italy’s luxe sector bore the brunt of a global stock sell-off Monday, as fears over that country’s debt spooked markets. PHOTO BY GIOVANNI GIANNONI 2 WWD TUESDAY, JULY 12, 2011 Italian Luxe Stocks Battered FASHION By WWD sTaFF Bikkembergs Sells His Brand MiLan — Fears of a growing European debt crisis spread to italy and luxury stocks in dramatic fashion Monday, dragging the including fragrances. With plans to develop busi- Milan Bourse down 4 percent even as officials stepped in to cur- By Luisa Zargani ness internationally, in particular in China and tail short selling. russia, 15 stores will open by 2012 in locations until recently it was greece — which has agreed to cut back on MiLan — Belgian designer Dirk Bikkembergs such as Dubai, Moscow, Kazan, Wenzhou, andorra, spending to secure a bailout from its neighbors — that was draw- has sold his brand to Zeis Excelsa spa, the label’s naples and Bologna, among others. There are 19 ing most of the attention as Europe’s financial troubles mounted. footwear licensee. Based in italy’s shoe produc- stores in existence. On Monday, that anxiety spread to italy, where Consob, the italian tion hub of the Marche region, Zeis Excelsa plans Zeis Excelsa spa, which holds international li- market watchdog, intervened to rein in short selling, a trading to strengthen Bikkembergs’ international retail censes for samsonite footwear, and distributes the strategy that allows investors to benefit when stock prices fall. structure, focus on the brand’s women’s wear col- Harley Davidson, Merrell and sebago brands on still smarting from Friday’s unexpectedly weak reading on job lections and further develop the italian market, closed 2010 growth in the u.s., investors pushed markets down around the its licenses, aiming at dou- with consolidated sales of 111 world, with bank stocks hit particularly hard. bling revenues within three A spring look million euros, or $146.5 million as the Milan Bourse fell more than 750 points to 18,295.19, years. as per the agreement, from Dirk at average exchange rates, and the CaC 40 dropped 2.7 percent to 3,807.51 in Paris, the DaX the company takes control of Bikkembergs expects revenues of 150 mil- fell 2.3 percent to 7,230.25 in Frankfurt and the FTsE 100 de- the Dirk Bikkembergs sport Sport Couture. lion euros, or $213.7 million at clined 1.1 percent to 5,927.89 in London. On Wall street, the s&P Couture, Bikkembergs and current exchange, this year. retail index declined 1.7 percent to 545.12 and the Dow Jones Bikkembergs sport brands. a year ago, an inquiry by industrial average decreased 1.2 percent to 12,505.76. The designer will remain as italy’s tax police resulted in European fashion executives kept a wary eye on the markets. creative director of the lines. allegations that Bikkembergs “We are surely [seeing] a speculation operation,” said Massimo “This is a new important de- had evaded tax payments of Ferretti, executive chairman of aeffe spa, which produces collec- velopment step,” said Maurizio 111 million euros, or $151.7 tions for alberta Ferretti and Moschino, among others. “it is sad to Pizzuti, chairman and chief million. The designer rebutted observe that the recent past has really taught us very little.” executive officer of Zeis the allegations, calling them guido Damiani, chairman and chief executive officer of Excelsa. “When we started “shameful towards a foreign Damiani, noted the already fragile situation was worsened by the manufacturing footwear to- investor.” The investigation risk of default by countries such as greece and Portugal. gether a few years ago, friend- was focusing on two compa- “On the other hand, there are countries that have started to ship, affection and mutual es- nies: 22 srl, which produces grow again a while back and won’t stop [growing],” Damiani said. teem developed between Dirk clothing in Fossombrone, “in regards to italy, even if consumer spending remains weak, it and myself.” Pizzuti said he italy, for Bikkembergs’ brand, has stopped decreasing. i don’t think italy is at risk and that the plans to preserve the brand’s and Luxembourg-based iFF short sales will end soon.” “italian character of produc- sarl, the distributor of the ianonni shares of Marcolin spa fell 7.6 percent to 4.48 euros, or $6.38 tion.” Consolidated revenues G brand’s products. at current exchange, as aeffe dropped 6 percent to 1.14 euros, of the Bikkembergs brands anni The authorities alleged V or $1.62; Tod’s spa fell 5.4 percent to 88.25 euros, or $125.75; today are about 100 million io the Bikkembergs organiza- G Y salvatore Ferragamo spa dropped 4.7 percent to 10.10 euros, or euros, or $141.5 million at b tion is in italy and that rev- $14.39; Damiani decreased 3.3 percent to 1.05 euros, or $1.50, and current exchange, excluding enues were redirected to hoto safilo group fell 4.6 percent to 9.26 euros, or $13.20. licenses for underwear, eye- P Luxembourg instead of being a luxury goods analyst who requested anonymity said the sec- wear and children’s wear. declared and taxed in italy. tor is being heavily penalized because of its high volatility. “This Bikkembergs was one of the antwerp six, an The designer’s lawyer, Francesco giuliani, said at reaction is to be expected as this segment magnifies the movements influential group of designers from Belgium’s the time, “Our position is that the authorities have of the market. However, these are also companies that are highly royal academy of Fine arts that included ann not taken into account the real situation: iFF exposed outside italy — Luxottica is one example — and for this Demeulemeester and Dries Van noten, among does not have a structured organization in italy, reason should not be too affected by italy’s penalizing trend.” others. Bikkembergs, known for his soccer-in- and they [the tax authorities] did not correctly shares of Luxottica group fell a relatively mild 1.9 percent for spired designs, launched his first men’s line in calculate the turnover of iF F, as they did not take the day to 21.90 euros, or $31.21. 1988, followed in 1993 by a women’s collection. into account the company’s costs.” The analyst said macroeconomic issues are the drivers behind since the spring 1989 season, the designer has an industry source said Bikkembergs’ fine has this kind of underperformance, which is “in no way justified by worked only with italian manufacturers. in the meantime been reduced to less than 3 mil- fundamentals” and that italy’s political problems could be one of Pizzuti said he is considering expanding lion euros, or $4.2 million, but the company was not the reasons investors are moving money out of the country.
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