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Lights, Camera, Action NEW YORK — the World, It Seems, Is a Stage for Fragrance Launches from Entertainers

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Lights, Camera, Action NEW YORK — the World, It Seems, Is a Stage for Fragrance Launches from Entertainers JONES NET FALLS 29.4%/2 LEE’S GUCCI AGENDA/14 Women’s Wear Daily • The Retailers’ Daily Newspaper • July 29, 2005 • $2.00 ▲ Carmen Electra is Max WWDFRIDAY Factor’s new U.S. face. Beauty Lights, Camera, Action NEW YORK — The world, it seems, is a stage for fragrance launches from entertainers. The latest are True Star Gold from Tommy Hilfiger, which is being fronted by Beyoncé Knowles, and Fusion, a scent produced by AMC Cosmetics that will be introduced in a story line on the long-running ABC soap “All My Children.” True Star Gold launches in December, while Fusion will make its debut in October. For more, see pages 7 and 10. Federated’s Game Plan: Macy’s to Add 330 Units, Future of L&T Undecided By David Moin NEW YORK — Macy’s will balloon next year to 730 units that will occupy almost every major U.S. market. Federated Department Stores Inc., owner of Macy’s and Bloomingdale’s, disclosed a game plan Thursday for its $17 billion merger with May Department Stores Co. that calls for the giant retailer to convert 330 May stores to Macy’s nameplates in fall 2006. The fates of two of May’s best-known divisions, Lord & Taylor and Marshall Y JOHN SCIULLI/WIREIMAGE Field’s, haven’t been decided, but Lord & Taylor will not be converted to Macy’s, See Macy’s, Page18 Y BRYN KENNY; ELECTRA PHOTO B ELECTRA Y BRYN KENNY; PHOTO BY JOHN AQUINO; STYLED B PHOTO BY 2 WWD, FRIDAY, JULY 29, 2005 WWD.COM Jones Profits Drop 29.4% By Vicki M. Young WWDFRIDAY Beauty NEW YORK — Jones Apparel Group Inc. on Thursday reported a 29.4 percent drop in second- GENERAL quarter profits and said it was un- Macy’s department stores will balloon to 770 units next year, occupying dertaking a strategic review of its 1 just about every major U.S. market, as a result of its parent buying May Co. infrastructure in an effort to im- prove planning and production. Jones Apparel Group reported a 29.4 percent drop in second-quarter For the three months ended 2 profits and said it was undertaking a strategic review of its infrastructure. July 2, income fell to $54.8 mil- Longtime Estée Lauder executive Peter Lichtenthal has been named global lion, or 46 cents a diluted share, 2 general manager of MAC Cosmetics, focusing on day-to-day operations. from $77.6 million, or 61 cents, in Wall Street punished Kellwood’s move to shed three divisions and cut its the same year-ago quarter. Sales earnings forecast, sending shares down $4.24 to $23.87 on the NYSE. increased by 11.8 percent to 4 $1.17 billion from $1.04 billion. BEAUTY: Tommy Hilfiger and Beyoncé Knowles are expanding their President and chief executive 7 masterbrand with True Star Gold, a women’s scent launching in December. officer Peter Boneparth, during a Mark Lee, Gucci’s new ceo, has an aggressive agenda that includes conference call with Wall Street 14 boosting sales, redesigning stores and expanding in emerging markets. analysts, said, “Some of the Newly acquired Barneys New York was a bright spot for Jones in the quarter. process changes we are acceler- than a flow issue.” footwear and accessories due to House textile-state lawmakers cast the deciding votes in pushing the ating [are] because the business The Buckingham Research changes in the department store 17 controversial Central American Free Trade Agreement over the finish line. is changing, the model in which Group kept its “neutral” rating of model, Boneparth said. SUZY IS ON VACATION [the retailers] do business and Jones, saying it would remain on Jones Apparel shares declined Obituary ..................................................................................................16 [are] successful is changing.” the sidelines until it sees some by $1.41 to close at $31.09 in New Classified Advertisements........................................................................19 He said the company has a turnaround in the business. York Stock Exchange trading. group of businesses it is comfort- On a segment basis, the bright For the first six months, in- To e-mail reporters and editors at WWD, the address is able with, but it needs to be more spot was retail, which soared 71 come fell by 17.6 percent to $141.8 [email protected], using the individual’s name. efficient. “It all goes back to percent to $339.7 million from million, or $1.17 a diluted share, WOMEN’S WEAR DAILY IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLICATIONS, INC. COPYRIGHT ©2005 speed,’’ Boneparth said. “How do $198.6 million. The current quar- from $172 million, or $1.34, a year FAIRCHILD PUBLICATIONS, INC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 190, NO. 21. WWD (ISSN # 0149-5380) is published daily except Saturdays, Sundays and holidays, with one additional you ship goods faster? What does ter includes results from Barneys ago. Sales climbed 11.2 percent to issue in June, July and November, two additional issues in April, May, August and December, and three additional issues in that mean in terms of distribu- New York, the upscale specialty $2.5 billion from $2.25 billion. February, March, September and October by Fairchild Publications, Inc., a subsidiary of Advance Publications, Inc. PRINCIPAL OFFICE: 7 West 34th Street, New York, NY 10001. Shared Services provided by Advance Magazine Publishers Inc.: S.I. Newhouse, Jr., tion requirements?” chain Jones bought last year. Jones reduced its anticipated Chairman; Steven T. Florio, Vice Chairman; Charles H. Townsend, C.O.O.; John W. Bellando, Executive Vice-President and C.F.O.; Jill The strategic review will Jones’ wholesale businesses post- 2005 full-year revenues to be- Bright, Executive Vice-President_Human Resources; John Buese, Executive Vice-President_ Chief Information Officer; David Orlin, Senior Vice-President_Strategic Sourcing; Robert Bennis, Senior Vice-President_Real Estate; David B. Chemidlin, Senior Vice-President_General focus on Jones’ vendor opera- ed mixed results. Wholesale bet- tween $5 billion and $5.1 billion. Manager, Advance Magazine Group Shared Services Center. Periodicals postage paid at New York, NY and at additional mailing offices. tions with an expectation of con- ter apparel sales fell by 6.1 per- Projected earnings per share on Canada Post Publications Mail Agreement No. 40032712. Canadian Goods and Services Tax Registration No. 88654-9096-RM0001. Canada post return undeliverable Canadian addresses to: DPGM, 7496 Bath Road, Unit 2, Mississauga, ON L4T 1L2. POSTMASTER: solidating third-party manufac- cent to $300.6 million from $320.2 an adjusted basis, excluding re- SEND ADDRESS CHANGES TO WWD, P.O. Box 15008, North Hollywood, CA 91615-5008. FOR SUBSCRIPTIONS, ADDRESS turing; and assessment of manu- million, while wholesale moder- structuring costs and manufactur- CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615-5008; Call 800-289-0273; or visit www.subnow.com/wd . Four weeks is required for change of address. facturing issues such as review ate apparel sales dipped by 1.4 ing inefficiencies, are forecasted Please give both new and old address as printed on most recent label. First copy of new subscription will be mailed within four of administrative support areas percent to $306.4 million from to equal or exceed the $2.39 the weeks after receipt of order. Address all editorial, business, and production correspondence to WOMEN’S WEAR DAILY, 7 West 34th Street, New York, NY 10001. For permissions and reprint requests, please call 212-221-9595 or fax requests to 212-221- to increase efficiencies, the $310.7 million. Wholesale foot- company posted for 2004. 9195. Visit us online: www.wwd.com. To subscribe to other Fairchild magazines on the World Wide Web, visit company said in a statement. wear and accessories sales, how- Retail, particularly at Barneys www.fairchildpub.com. Occasionally, we make our subscriber list available to carefully screened 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 by mail Buckingham analyst Lee ever, rose by 2.6 percent to $218.7 New York, was strong, with a and/or e-mail, please advise us at P.O. Box 15008, North Hollywood, CA 91615-5008 or call 800-289-0273. Backus, in a research note, said, million from $213.1 million. comp-store increase of 13 per- WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR LOSS, DAMAGE, OR ANY OTHER INJURY TO UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND “Management blamed the re- One not-so-bright note was the cent in the quarter in addition to TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART duction on department stores’ junior L.E.I. operation, which a 15.1 percent gain in the same WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE insistence on improving turns. Boneparth said required a re- quarter in 2004, said Howard ACCOMPANIED BY A SELF-ADDRESSED OVERNIGHT-DELIVERY RETURN ENVELOPE, POSTAGE PREPAID. We believe that the problems go structuring. The second half will Socol, ceo of Barneys. He added deeper than that and some of be tough because the business that the Co-op concept remains [Jones’] key brands are losing was “uncompetitive,” he said. strong, and it has a “very, very market share….We believe that The quarter was also affected strong denim business followed this is more of a product issue by reduced receipt plans for by our collection business.” Quote of the Week “I’m way too young to retire.
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