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Silver Fox a One-Hit Wonder, She Is Not

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Silver Fox a One-Hit Wonder, She Is Not Page 1 Monday RETAIL: ▲ INNERWEAR: Gearing ACCESSORIES: Vendors and buyers up for Movado links upbeat about a Fashion’s with artist recovery, page 8. Night Out, Kenny Scharf, ▲ page 9. INSIDE: page 3. ▲ WWDMAGIC Preview Women’s Wear Daily • The Retailers’ Daily Newspaper • August 17, 2009 • $3.00 WWDAccessories/Innerwear/Legwear MONDAY Silver Fox A one-hit wonder, she is not. Brit songstress Estelle is out to prove she’s got more to offer than “American Boy,” her Grammy-winning duet with Kanye West. She’s hard at work on a pop-leaning follow-up album to 2008’s “Shine,” and now the singer is revealing her brand new look to WWD. “I just don’t want to be stuck or corseted,” she says. Here, Estelle goes for bold and unabashed sexiness. For more, see pages 6 and 7. Hip but Under Pressure: Contemporary Retailers Squeezed by Downturn By Vicki M. Young THE WAITING CONTINUES IN THE hard-hit contemporary retail market. While merchants wait for the next big trend that will spur consumers to get over their reluctance to buy, the finance executives in the back office struggle to pay bills and keep credit flowing. As a result, many of their vendors are waiting for payment as well. “This is a really tough period for the contemporary market, which is having a Camilla and Marc’s supercompetitive time,” said investment metallic weave blazer banker Richard Kestenbaum of Triangle and Sass & Bide’s Capital LLC. acetate, nylon and Lycra spandex bodysuit. Kestenbaum sees “the classic signs of Cesare Paciotti shoes. a mature market” as customers who once rushed out for items like premium denim find their closets full, their budgets tight and their See Contemporary, Page12 PHOTO BY TALAYA CENTENO; HAIR BY DICKEY/HAIR RULES; MAKEUP BY AJ CRIMSON FOR KISSABLE COUTURE; FASHION ASSISTANT: JENNIFER BLITZER; STYLED BY MAYTE ALLENDE MAYTE JENNIFER BLITZER; STYLED BY ASSISTANT: AJ CRIMSON FOR KISSABLE DICKEY/HAIR COUTURE; RULES; MAKEUPFASHION BY CENTENO; HAIR BY TALAYA PHOTO BY 2 WWD, MONDAY, AUGUST 17, 2009 WWD.COM Penney’s Posts Loss in 2Q By Evan Clark originally planned. Their spending habits have changed to reflect this for the foresee- WWDMAccessories/Innerwear/LegwearONDAY CONSUMERS MIGHT STILL BE UNEASY, BUT able future in our opinion.” Myron E. “Mike” Ullman 3rd, J.C. Penney Co. Penney’s loss in the second quarter, which FASHION Inc.’s chairman and chief executive officer, said translated to a breakeven performance on a There have been myriad fashion lessons learned his confidence is growing — despite the compa- per share basis, was better than the 1-cent 6 ny’s $1 million second-quarter loss and 7.9 per- deficit analysts’ predicted. Results com- since Estelle Swaray’s first U.S. album, “Shine,” cent sales decline. pared with year-ago earnings of $117 million, catapulting the rapper-R&B singer to stardom. “We’ve seen the volatility of our business or 52 cents a share. And sales for the quar- GENERAL narrow, and this stabilization has enabled us to ter ended Aug. 1 slipped to $3.94 billion from be more thoughtful in planning our business,” $4.28 billion. 1 While contemporary stores await the next big trend Ullman told analysts on a conference call Friday. The company’s strongest results came in to entice shoppers, their finance chiefs struggle to “We’re more confident coming into the third shoes and women’s apparel, where the Polo pay bills and keep credit flowing. quarter than we were in the second quarter, al- Ralph Lauren Corp.-produced American Living, 3 Switzerland’s Swatch Group reported a 28 percent beit overall consumer demand is still lagging.” A.n.a. and Worthington brands were key driv- slump in first-half net profits but forecast a pick-up Ullman said the company’s average unit re- ers. California was particularly strong and the in demand for the second half. tail price would be on par with a year ago in the Southwest — stripped of competition from the second half. now-liquidated Mervyns — was Penney’s best- INNERWEAR: If the intensity of traffic at the recent s 8 Penney’s projected third-quarter results performing region. New York market was an indication, the economy is would range from a loss of 5 cents a share to For the first half, earnings fell 89.9 percent to on the slow road to recovery. earnings of 5 cents a share — worse than the $24 million, or 11 cents, on a 6.9 percent decline 9 ACCESSORIES: Movado is known for its clean, profits of 14 cents a share analysts were expect- in sales to $7.83 billion. modern timepieces, but its collaboration with artist ing. The vast majority of the company’s expect- The company boosted its guidance for the Kenny Scharf goes in a different direction. ed profits for the year are slated to come in the full year to earnings of 75 cents to 90 cents a all-important fourth quarter, which includes the share, up from the 50 cents to 65 cents previ- 10 Kmart is launching a new apparel brand, Thre3 by holiday season. ously projected. The new range is more in line the U.S. Polo Association, in time for the back-to- “Consumers still have a lot on their with the 89 cents analysts had projected for school selling season. minds,” said Ullman, who also sits on the the year. EYE board of the Federal Reserve Bank of Dallas. But company is still taking a cautious path “Overriding concerns about the future of forward. Capital expenditures are projected to Given the relatively gloomy summer, New Yorkers health care and the timing of an economic fall to about $400 million next year from $600 4 have been eager for days to shed their layers, recovery continues to create uncertainty and million this year. A look from Josie. sometimes to unflattering results. angst from the consumers who realize that Shares of the firm declined 6.2 percent to WWD MAGIC Preview is included in this issue as a supplement. they may need to save more than they had $31.29 Friday. Classified Advertisements.................................................................................................15 TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS [email protected], USING THE INDIVIDUAL’s NAME. WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT ©2009 Tough Quarter at A&F Triggers Price Cuts FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 198, NO. 35. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one additional issue in January, May, October, November and December, two additional issues in March, April, June and By Alexandra Steigrad said, referring to the 29-door chain the company August, and three additional issues in February and September) by Fairchild Fashion Group, which is a division of Advance decided to shutter in June. “That’s a lesson for Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by Condé AFTER reportiNG A $26.7 MILLION LOSS IN Gilly going forward and all of our brands. We Nast Publications: 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 the second quarter and its third straight quarter are young. We are sexy. We are controversial at at additional mailing offices. Canada Post Publications Mail Agreement No. 40644503. Canadian Goods and Services of double-digit sales declines, Abercrombie & times. That’s what we know how to do and that’s Tax Registration No. 886549096-RT0001. Canada Post: return undeliverable Canadian addresses to: P.O. Box 503, RPO Fitch Co. said it is working to enliven its fashion the business that we own here and are comfort- West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK mix and lower prices. able that we can around the world.” ISSUE INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or The New Albany, Ohio-based company has For the second quarter ended Aug. 1, visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. Subscribers: If the sought to protect its brand and avoid promo- Abercrombie’s loss translated into 30 cents a di- Post Office alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, tions even as consumers opted for less-expen- luted share and compared with a profit of $77.8 you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy sive fashions, but chairman and chief executive million, or 87 cents, a year ago. The loss includ- of new subscription will be mailed within four weeks after receipt of order. Address all editorial, business, and production officer Michael Jeffries said the teen retailer is ed a $24.4 million pretax charge for closing the correspondence to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions and reprint requests, please call 212-630-4274 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other beginning to adjust its strategy.
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