The Beat, Burberry’s COTY IN DEL DEAL/8 TOMMY’S SOHO HOME/17 latest women’s scent, Women’sWWD Wear Daily • The Retailers’FRIDAY Daily Newspaper • December 7, 2007 • $2.00 page 8. Beauty English Channel
LONDON — Coco Chanel had deep links to London — both romantic and professional — so it was only natural that Karl Lagerfeld brought his road show to town, literally taking it over with Chanel-logoed cabs, two parties and a runway show for his métiers d’art collection of pre-fall ready-to-wear. Mixing Gallic chic with British punk, the show featured bags covered in Union Jacks, winklepicker shoes, tartan tulle dresses and Amy Winehouse-inspired hair. Here, a cream smock dress. For more, see pages 6 and 7.
Fighting the Tide: Holiday Beauty Sales Off to Strong Start By Julie Naughton jitters. And somewhat surprisingly, 2 percent in October, a possible and Matthew W. Evans retailers say some of the biggest indication that fragrance will have a all it a color-me Christmas. gains are coming in color cosmetics, strong Yule. C While the jury has barely turning the conventional wisdom While December once was begun to deliberate, the prestige that holiday is all about fragrance chiefly devoted to fragrance sales, beauty business seems to be on its ear. However, NPD figures that trend is diminishing a bit, with dispelling pre-season holiday indicate that fragrance sales rose See Fragrance, Page 10 PHOTO BY STEPHANE FEUGERE PHOTO BY the mystery of the sea The sea holds many secrets... anti-aging is one of them. Deep within the oceans of the world are some of the most powerful anti-oxidants and restorative minerals that can help reverse signs of aging. the science of skin La Prairie has developed an exclusive biotechnology that harnesses the natural power of these ocean botanicals on land, without compromising our fragile marine ecosystem. Our exclusive sea-born complex protects, fi rms and restores your skin’s youthful radiance. Like nothing on earth.
céline cousteau Born explorer and traveling Cousteau “oceanaut,” this is a woman who truly understands the transformative powers of the sea. Committed spokeswoman for the environment, she works with Ocean Futures Society, a non-profi t organization dedicated to exploring the ocean, inspiring and educating people about ways they can help protect it. In Céline Cousteau, La Prairie has found a naturally perfect partnership to advance the science of sea-born skincare. Together, we can create a wider awareness about ocean sustainability. la prairie and céline cousteau introduce advanced marine biology cream 4 WWD, FRIDAY, DECEMBER 7, 2007 WWD.COM Steiner, Greiss Tapped at Rykiel By Robert Murphy plained. “We like to do things our own quirky way. We are one of the only remaining family-owned fash- PARIS — Sonia Rykiel has a new managing director, ion businesses in France. We are 100 percent auto- WWDFRIDAY Beauty a new creative director and revved-up ambitions to fi nanced and we are growing. Our story is unique.” build its business abroad, particularly in the U.S. Sources estimate Rykiel had sales of about 100 François Steiner, 44, former president of Kenzo, million euros, or $147 million at current exchange, FASHION has been appointed the house’s new managing di- last year with an increase in revenues of about 10 Bringing a blast of Gallic chic and punk energy to London, Karl Lagerfeld rector, while Gabrielle Greiss, 34, was promoted percent. The house operates 29 wholly owned bou- 6 staged a blockbuster show of luxury pre-fall ready-to-wear Thursday. to creative director of the fi rst fashion line. Greiss tiques and counts 26 franchised stores. has worked in the studio with house founder Sonia “Our main priority is to grow our business Rykiel for the last two years. in the United States,” said Nathalie Rykiel. GENERAL Steiner, who has also held management jobs at Bloomingdale’s and Intermix are among the While the jury has barely begun to deliberate, the prestige beauty Louis Vuitton and Thomas Pink, reports to Nathalie stores that carry the line in the U.S. It is also sold 1 business seems to be dispelling pre-season holiday jitters. Rykiel, Sonia Rykiel’s daughter the house’s presi- in Rykiel boutiques in Manhattan and Boston. Sonia Rykiel has a new managing director and creative director, and dent and artistic director. He started this fall, but it “We fell asleep in America,” admitted Rykiel. 4 revved-up ambitions to build its business abroad, particularly in the U.S. is only now that his position has been made offi cial. “It’s time for us to wake up.” “We want to build the future,” said Nathalie Rykiel. Nathalie Rykiel said Steiner is crafting a co- Burberry hopes to up the tempo at fragrance counters worldwide in The appointments come as Rykiel prepares to herent strategy for Rykiel in America. She said 8 March when it launches The Beat, its latest scent for women. celebrate its 40th anniversary next year. her daughter, Lola, 22, a trained classical dancer, Retailers are discovering it takes much time and effort to merchandise In January, the house will inaugurate the festivi- was assuming an ambassador role for the brand in 14 exclusive beauty products and take on the role of marketer. ties by unveiling a refurbished and expanded fl ag- New York, where she lives. ship boutique on the Boulevard Saint-Germain, in The changes were prompted after Nathalie Rykiel November same-store sales refl ected a strong start to the holiday the heart of the Left Bank shopping district. last year divorced her husband, Simon Burstein, who 16 season, with department stores posting the biggest gains. Nathalie Rykiel said the company would in- had doubled as house president. (Burstein’s family Classifi ed Advertisements...... 19 troduce a special capsule collection of “collect- runs the Browns fashion stores in London.) able” pieces, as well as stage a blowout party on Greiss, who trained at Central Saint Martins in To e-mail reporters and editors at WWD, the address is fi rstname. the Boulevard Saint-Germain in May. The fete is London, is well-known in fashion circles here, having [email protected], using the individual’s name. scheduled for May 25, which will coincide with worked with Alber Elbaz at Lanvin, Martine Sitbon WWD IS A REGISTERED TRADEMARK OF ADVANCE MAGAZINE PUBLISHERS INC. COPYRIGHT Sonia Rykiel’s 78th birthday. “We wanted to do and Anna Molinari before joining Rykiel. Though her ©2007 FAIRCHILD FASHION GROUP. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. something atypical — very Rykiel.” touch has been evident since she arrived two years VOLUME 194, NO. 121. WWD (ISSN 0149–5380) is published daily (except Saturdays, Sundays and holidays, with one Meantime, next October, a museum retrospec- ago, she now is expected to amplify her infl uence additional issue in January and December, two additional issues in March, May, June, August, October and, November, and three additional issues in February, April, and September) by Fairchild Fashion Group, which is a division of Advance tive of Rykiel’s four decades of style is planned for over Rykiel’s cheeky Left Bank style even more. Magazine Publishers Inc. PRINCIPAL OFFICE: 750 Third Avenue, New York, NY 10017. Shared Services provided by the fashion museum in the Louvre here. “It will Nathalie Rykiel said Greiss would take a bow Condé Nast Publications: S. I. Newhouse, Jr., Chairman; Charles H. Townsend, President/CEO; John W. Bellando, Executive be the fi rst time we’ve done a museum show in on the podium — alongside her and her mother Vice President/COO; Debi Chirichella Sabino, Senior Vice President/CFO; Jill Bright, Executive Vice President/Human Resources. Periodicals postage paid at New York, NY, and at additional mailing offi ces. Canada Post Publications Mail France,” said Nathalie Rykiel, who added a docu- — after the upcoming fashion show in Paris. Agreement No. 40644503. Canadian Goods and Services Tax Registration No. 886549096-RT0001. Canada Post: return mentary fi lm about the house as well as a literary But she was quick to emphasize her mother is undeliverable Canadian addresses to: P.O. Box 503, RPO West Beaver Cre, Rich-Hill, ON L4B 4R6 POSTMASTER: essay on her mother’s style are also in the works. not passing the baton. “Sonia comes to work every SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 15008, North Hollywood, CA 91615–5008. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE “We want to show our individuality,” she ex- morning,” she said. “She is not retiring.” INQUIRIES: Please write to WWD, P.O. Box 15008, North Hollywood, CA 91615-5008, call 800-289-0273, or visit www.subnow.com/wd. Please give both new and old addresses as printed on most recent label. First copy of new subscription will be 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 or fax requests to 212-630-4280. Visit us online at www.wwd.com. To subscribe to other Victims in Omaha Shooting Chosen at Random Fairchild magazines on the World Wide Web, visit 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, please advise us at P.O. Box 15008, North Hollywood, CA By Georgia Lee There is no industry standard more rigorous since the Sept. 11 91615-5008 or call 800-289-0273. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, or typical security footprint for terrorist attacks, Lusher said. OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, he 19-year-old gunman who shopping malls, said Jon Lusher, Although malls have stepped up BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR Tfatally shot eight people at principle consultant, IPC surveillance, the use of metal CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WOMEN’S WEAR a busy mall in Omaha, Neb., on International in Chicago, which detectors is unlikely. DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY Wednesday before killing him- provides security services to 400 “Practical considerations, A SELF-ADDRESSED STAMPED ENVELOPE. self picked his victims at ran- U.S. malls. Personnel and equip- and more than that, disruption dom, authorities said. ment are determined by multiple of freedom of access, would The 1.2 million-square-foot factors, including crime statis- probably prevent that,” he said. Westroads Mall on the city’s tics and demographic profi les. During the holiday season, west side, which is managed “These incidents, while major mall operators sought to Quote of the Week by General Growth Properties, tragic, have little or no effect reassure the public that keeping remained closed Thursday be- on people’s shopping habits,” shoppers, tenants and employees cause of the crime scene inves- Lusher said. “People recognize safe was their most important goal. “The U.S. is on sale. It’s a bargain for tigation. The 135-store mall was them as isolated incidents.” Chicago-based General to reopen today. Security training has become Growth said in a statement, “Our the European customer.” number-one priority has been to — Stephen I. Sadove, ensure the safety and well-being 7:L;HJ?I;C;DJ of the shoppers and employees.” chairman and chief executive offi cer, Saks Inc. Simon Property Group echoed the focus on safety. “This can happen anywhere at anytime — at a university in Virginia, a high school in
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Here and at right: Looks from the Chanel pre-fall collection, including Amy Winehouse-inspired Karl Hails Britannia hair and makeup. By Miles Socha LONDON — Leave it to Karl Lagerfeld and Chanel to bring the Eiffel Tower a little closer to Big Ben. Bringing a blast of Gallic chic and punk energy to the English capital, Lagerfeld staged a blockbuster show of luxury pre-fall ready-to-wear Thursday night. But that’s not all: On Wednesday night he unleashed fl eets of Chanel-logoed black cabs to ferry guests to a thumping Nobu dinner, and on Thursday hosted back-to-back after parties — one with an exhibition of his moody black-and-white photos of Versailles. “Where does he fi nd the time? He should do workshops on time management,” marveled Thandie Newton on Wednesday night as she fought her way through the crowd fl ooding into Nobu, including Kylie Minogue, Natalie Imbruglia, Rinko Kikuchi, Kate Moss, Tom Ford, Charlotte Casiraghi, Kelly Osborne, Emma Watson, Yasmin Le Bon and Daphne Guinness. “Of course I came. I love Karl,” said Minogue, who later popped onto a stool to pose for a photo with a very tall friend. Before the show, held at the new Phillips de Pury & Co. headquarters in London’s Victoria neighborhood, Lily Allen mused on London-versus-Paris style. She said she found the former “more daring, more quirky” and the latter unbeatable for classics. But she was in a celebratory mood over her Grammy nomination. “I do need to buy myself a congratulations present,” Allen said. “I like London style,” said Tokyo-based Kikuchi, who plays a sword-wielding character in her next fi lm, a Japanese action feature. “I think it’s very rock.” Taking the raucous creative pulse of London to heart, Lagerfeld’s show featured handbags festooned with Union Jacks, spectator-style winklepicker shoes and tartan tulle dresses, all to the beat of live music by Sean Lennon and model-cum-singer Irina Lazareanu. “It’s clothes for today, but it’s quite Baroque at the same time…a postmodern version of sophisticated punk for the rich,” Lagerfeld said during fi ttings on Wednesday, as a model strode by wearing slim black satin jeans with panels streaming from the back pockets “to give some action.” One of Lagerfeld’s inspirations was British singer Amy Winehouse, who scored six Grammy nominations Thursday, and whom he likened to “a Brigitte Bardot, with black hair.” To wit, all the models sported the singer’s signature messy beehive and heavy eye makeup. The fashion messages include lean silhouettes, fl at shoes and an eccentric mix of delicate ruffl es and rough-and-tumble hardware. Knitwear was strong, from piped cardigans and bubble skirts to breeches. “Postmodern romance,” said Lagerfeld. “The collection is not based so much on shapes as art and craft.” Suits and coats came trimmed in zippers and coats were edged in jewels or dotted with glittering brooches. The show was the latest métiers d’art collection, launched in 2002 as a way to showcase the skills of the seven couture ateliers that Chanel owns. These include the embroiderer Lesage, the shoemaker Massaro, the feather artisan Lemarié and the silversmith Goossens. Technical innovations this season include high-heeled shoes with bulbous heels that actually light up — “Batteries included,” Lagerfeld noted —and gloves and neckpieces made from delicate, articulated metal feathers. Lagerfeld’s favorite piece? His Doorstop bag, a wedge-shaped clutch that can be tucked under the arm and won’t slip out. London hasn’t seen such a polished and luxurious show for eons: There were endless trays of Champagne, hors d’oeuvres in geometric shapes, candlelit seating and handwritten place-cards. “It’s all very grown-up for London,” said one observer. Ever the Chanel fan, Emma Watson said it was hard to capture the essence of Karl. “He’s got that je ne sais quoi,” she mused. “And I think this show was terrifi c for London fashion.” Another Emma — Thompson, this time — said it was her fi rst fashion show. “Clearly I have not lived. Someone told me I should have worn black,” said the Agyness Deyn Oscar-winning actress, who was concerned about her outfi t because she was wearing grooves to a cream jacket-and-trouser ensemble. Told the show would last about 15 minutes, the tunes. Thompson said: “That’s just like a fi lm: All the buildup — and then it’s over.” Chanel, which operates about 10 boutiques in England, including one that just bowed in Manchester, has ties to the country that stretch back almost a century. It all started when Gabrielle Chanel struck up a romance with polo player Arthur “Boy” Capel, who fi nanced her when she set up business in 1910 as a milliner. Chanel was later inspired by another English boyfriend, the Duke of Westminster. The years 1925 to 1929 represented her most intense English period: She brought Irish tweeds into the Chanel vernacular and into postwar fashion, said Lagerfeld, who has an encyclopedic knowledge of the iconic designer. “She always had a very good relationship with England, and in those days, English people spoke French,” Lagerfeld noted. For his part, Lagerfeld confessed admiration for “the hunting look” and a particular affection for the Edwardian period, when parading women were “feathered, gorgeous creatures. I like those periods when the world is on the edge of the end,” he said. Bruno Pavlovsky, Chanel’s president of fashion, said the métiers d’art collection — initially tested in a handful of stores — is now carried in all 154 Chanel boutiques and select wholesale accounts in the U.S. While it’s evolved into a signifi cant and growing business for Chanel, Pavlovsky stressed the limited quantities of garments, priced in the 10,000 to 15,000 euro range, or $14,600 to $22,000, tap into the upscale customer’s desire for exclusive and exceptional products. Prices for the collection shown Thursday are still being fi nalized but run up to 30,000 euros, or $43,900, for a full-length leather coat festooned with jeweled embroideries. The clothes — plus shoes, accessories and jewelry — start arriving in Chanel boutiques in May, allowing the French brand to offer completely new collections every two months. “There’s a need or a desire for change and new things all the time,” Lagerfeld said. “You don’t wait six months to go back to the shop. The offer has to change. Shopping is a cultural activity.” Chanel represents between 30 and 50 percent of the workload for the couture ateliers it owns, and the métiers d’art collection has helped boost demand such that the ateliers have had to hire more than 50 employees, Pavlovsky said. The executive declined to give fi gures for Chanel’s U.K. business, but described it as “booming,” bolstered by strong local demand and tourism. “The last two years have been very dynamic,” he said. “It’s quite a well-balanced business.” For his part, the ever-restless Lagerfeld is brimming with concepts for his next show-on-the-go. “Besides London, my other idea was to go to India, so that will be next time.” WWD, FRIDAY, DECEMBER 7, 2007 7 WWD.COM
Karl Lagerfeld snaps Natalie Imbruglia and Kylie Minogue.
The Chanel-logoed taxis that ferried guests around town.
Joana Preiss and Elodie Fiona Scarry and Bouchez at Charlotte Casiraghi Wednesday night’s party.
Kate Moss Lily Allen
Emma Watson PHOTOS BY STEPHANE FEUGERE PHOTOS BY 8 WWD, FRIDAY, DECEMBER 7, 2007
Beauty Report WWD.COM Burberry: Marching to The Beat
By Brid Costello Ropion said. Other notes include bergamot, cardamom, pink The pepper, mandarin, white musk, vetiver and cedarwood. An “in- LONDON — Burberry hopes to up the tempo at fragrance coun- scent’s tense elixir parfum,” a more concentrated blend of the scent, ters worldwide starting in March, when it launches The Beat, its print also will be on offer. latest scent for women. ad. Baron and Bailey designed The Beat’s fl acon, which features The British luxury brand and its beauty license holder Inter an oversize version of a Burberry check pattern, mirroring a Parfums concocted the scent with an eye to tapping the vigor of scarf worn by Deyn in the advertising. The bottle also has a sil- its fashion business, which has been growing apace in recent ver-colored cap, as well as a suede-and-metal charm, which is a years. “The energy that exists within the company is encapsu- nod to Burberry accessories. lated within this fragrance,” said Christopher Bailey, Burberry’s “It feels a bit like an old English gentleman’s fl ask,” said Bailey, creative director. “It encompasses the brand as it is today. It’s of adding that The Beat’s outer carton opens like a matchbox to un- the moment.” derscore the scent’s relaxed and modern concept. The elixir’s “It is very young and modern,” continued Philippe Benacin, bottle has a mirror-effect silver fi nish decorated with the check chairman and managing director of Inter Parfums SA, adding pattern and comes in a transparent cube rather than a carton. that the scent marries elegance with a rock ’n’ roll edge. “It’s Ancillaries include a shower gel and body lotion. The eau very well connected to what Christopher Bailey is doing with de parfum will be available as 30-, 50- and 75-ml. sprays priced Burberry today.” in the U.K. at 27 pounds, or $54.70; 38 pounds, or $77, and 48 The Beat is also meant to bolster Burberry’s fragrance portfolio pounds, or $97.30. A 40-ml. bottle of elixir will retail for 65 by offering a more international bent, Benacin said, adding that pounds, or $131.70. In the U.S. the sprays will be priced at $50, its most recent introductions, Burberry Brit and Burberry London, $62 and $80, respectively, with the elixir priced at $130. In the are more obviously linked to the brand’s London heritage. U.S., the 5.1-oz. body lotion will be priced at $39.50 and the 5.1- Industry sources estimate The Beat will generate between 120 million euros, or oz. shower gel will be priced at $35. $176 million at current exchange, and 140 million euros, or $205 million, worldwide In the U.S., The Beat will roll out at Bloomingdale’s, Neiman Marcus, Nordstrom in its fi rst year at retail. and Saks Fifth Avenue in March, to be followed with additional department store With the scent, Bailey also aims to keep a fi nger on the pulse of today’s pretty doors following in April. young things, as well as women who are young at heart. “[While working on the “The Beat is a fragrance that will capture the true spirit of the moment,” said Don concept,] the word we kept using was ‘energy,’” he recalled. “We wanted youthful Loftus, president and chief executive offi cer of P&G Prestige Products in the U.S. energy. We wanted movement, for it to be active and to have the spirit of youthful- “The energy of fashion and music evoked by The Beat will introduce a new group of ness come out in everything that we did.” consumers to the uniquely British history and heritage of Burberry Fragrances.” To channel that sense of youthful joie de vivre, Bailey, as reported, selected — With contributions from Julie Naughton, New York British model Agyness Deyn, who appears in The Beat’s adver- tising campaign. “She doesn’t take things too seriously. She’s a free spirit,” said Bailey. That’s evident in the fragrance’s advertising, which was art directed by Fabien Baron and photographed by David Sims. The Coty Said in Deal to Acquire Del Labs single- and double-page print campaign features multiple im- eports circulated in the market late Coty’s chief executive offi cer Bernd Beetz aims ages of the model as she dances to rock music. RThursday that Coty Inc. has signed a deal to take the $3.3 billion fi rm public, but said he Television ads feature a track by Glaswegian band The Fratellis to buy Del Laboratories for an estimated $800 would fi rst need to round out its fragrance- as well as a voice-over by Deyn introducing the fragrance. million. It is expected that the two fi rms could heavy brand portfolio. This particular deal The Beat’s juice also has a musical connection, since Bailey announce the acquisition as early as today. would pad Coty’s beauty business signifi cantly, provided perfumers who worked on the brief with albums by Del Labs, which is owned by the New York given cosmetics — including Sally Hansen and Kasabian, Dirty Pretty Things, Razorlight, the Arctic Monkeys private equity fi rm Kelso & Co., is known in the NYC New York Color — account for about 80 and The Fratellis to illustrate the mood he was aiming to create beauty industry for its Sally Hansen nail care percent, or $340.7 million, of Del Labs’ 2006 net with The Beat. — the market leader — but its business also in- sales, which totaled $425.9 million. Coty is 100 “I always see things in terms of all the senses,” said Bailey. cludes over-the-counter pharmaceuticals, such percent owned by the Ludwigshafen, Germany- “Fashion is not just about clothes or color, but also about scent, as the Orajel brand. based Joh. A. Benckiser GmbH, a private hold- sound and light. I don’t see them as separate things.” Industry sources anticipate that Coty will ing company that also owns 15 percent of the For International Flavors & Fragrances noses Dominique purchase both businesses and later shed the London-based consumer products fi rm Reckitt Ropion, Olivier Polge and Beatrice Piquet, the musical analogy pharmaceuticals piece. They also expect Coty Benckiser. was a useful creative tool. “[Music and perfumery] are two uni- will move swiftly to consolidate Del Labs’ News of Coty’s possible purchase of Del verses where words are diffi cult,” said Polge. Uniondale, N.Y., headquarters into the fra- Labs was fi rst reported by The Wall Street Bailey also was keen to imbue the sparkling fl oral woody juice grance fi rm’s Manhattan offi ces. Journal last week. with a typically British feel, so a Ceylon tea with iris accord and a Industry watchers have long suspected that — Molly Prior bluebell accord were created to form the scent’s “spinal column,” Guerlain Opens First U.S. Freestanding Store uerlain has opened a boutique at the what we envision as the blending of exception- GWaldorf-Astoria in advance of the spa it is al luxury spa experiences and incomparable constructing at the hotel. hotel accommodations committed to guest en- The boutique, adjacent to the historic clock gagement, exploration and discovery,” added located on the ground floor Eric Long, general manager of the venerable Manhattan of the Waldorf-Astoria. The new hotel, is selling the Guerlain While Maiocco declined boutique. skin care, fragrance and to discuss sales projections, makeup collections, and is industry sources estimated taking advance registrations the boutique would gen- for the brand’s fi rst Guerlain erate retail sales of more Spa, being constructed on the than $1 million in its fi rst hotel’s 19th fl oor. The spa, a year of operation. collaboration between the Maiocco said additional Waldorf-Astoria Collection, Guerlain boutiques are the LVMH Moët Hennessy set to open next year. “We Louis Vuitton-owned Guerlain are definitely planning and global spa operator Spa to expand the number of Chakra Inc., is expected to Guerlain boutiques in the open early next year. U.S. in 2008,” she said, not- “Guerlain and the Waldorf- ing that future Guerlain Astoria are both leaders in the Spas and Guerlain bou- luxury market and share values tiques are planned for of excellence and service,” said newly built Waldorf-Astoria Linda Maiocco, vice president Collection hotels in gate- of marketing for Guerlain, of way cities globally. “To the boutique, which had a soft maintain Guerlain’s exclu- opening earlier this week. “This partnership, in sivity, the decision to open new boutiques will addition to Guerlain’s retailer exposure in spe- remain very selective. We are currently fi nal- cialty doors, provides excellent brand exposure izing a plan to open one additional boutique and a great presence for Guerlain in the U.S.” in spring 2008.” “The Guerlain boutique is the fi rst phase of — J.N.
10 WWD, FRIDAY, DECEMBER 7, 2007 WWD.COM The Beauty Report WWD.COM Fragrance Off to a Solid Start Continued from page one “This season, there’s a mix of annual favorites and new items that we expect to items such as high-end skin care capturing considerable business. “I expect high- do very well,” continued Olum. “Of course, perennial successes like Philosophy end skin care, limited-distribution color brands and holiday color palettes to do Home for the Holidays and Sephora’s Blockbuster Palette, which fl ew off store well for the holidays,” said Howard Kreitzman, vice president of cosmetics and shelves last year, will be very popular, but clients are responding favorably to prod- fragrances for Bloomingdale’s. ucts that offer something fun and unique. Items like the Too Faced Lights, Camera, Several other retailers agree that color is on a roll, particularly MAC Cosmetics. Glamour! palette that contains a Hollywood makeup mirror that actually lights up, Claudia Lucas, senior vice president and general merchandise manager at and the L L.A.M.B. set that not only contains the fi rst fragrance by Gwen Stefani, Henri Bendel, said the retailer had a “terrifi c November” and expected the trend but also a body lotion and solid perfume, are proving to be successful as well.” to continue. “We’re really optimistic,” she said, noting that her business has also “We’re very excited and happy about our overall fragrance business. It’s been very been buoyed by a steady stream of Europeans taking advantage of the weak dollar. strong,” said Wendy Gottfried, associate divisional merchandise manager for fragranc- “Business is good across the board, particularly in color. We are already on our es and intimate apparel at Saks Fifth Avenue. “We feel very optimistic we will contin- third re-order of MAC’s holiday set. Lip gloss sets and palettes are also doing very ue with our strong trend. We’re tracking to [exceed] plan and last year’s numbers.” well, as is Memoire Liquide. We’re also selling a lot of gift cards. A certain percent- Creating a lifestyle approach and having a differentiated product assortment age of sales are probably self-purchases as well — at Bendel’s, we have a saying: that’s kept fresh will be key to staying on track, according to Gottfried. “Fragrance ‘One for you, two for me.’” is defi nitely our star performer for the quarter and season. [It’s] “In color cosmetics,” said Jon Pollack, executive vice presi- outpacing skin care and color.” Daisy dent and general merchandise manager at Belk Inc., “our make- Fragrance brands that have stood out so far include the Marc Jacobs up artist portfolio has been explosive, we see that continuing.” Saks Fifth Avenue fragrances produced by Bond No. 9, Chanel, Standout color brands include Bobbi Brown, MAC Cosmetics, Hermès, Sisley, Gucci, Pucci, Jo Malone, Creed, Annick Goutal, BeneFit Cosmetics, Laura Mercier and Chanel. Estée Lauder, Tom Ford and Trish McEvoy. But that’s not to say that fragrances aren’t important, “We’re seeing great synergies with the designer houses,” said Kreitzman added. “Our best new fragrances have been Marc Gottfried, pointing to Bond No. 9, Tom Ford, Narciso Rodriguez Jacobs Daisy, Prada D’Iris and DKNY Delicious Night,” said and Dolce & Gabbana as standouts on the men’s side. Items that Kreitzman. Daisy and Prada D’Iris, in fact, were often men- are unusual are “really performing,” she said. tioned as strong sellers. As for competition from other departments within the store, Retailers cited other standout brands as Diesel, Usher’s mas- “During markdown periods there are always challenges,” said terbrand, Sean “Diddy” Combs’ Unforgivable for Women, L, a Gottfried. However, she said she believes presentations in the L.A.M.B. fragrance by Gwen Stefani, YSL’s Elle, Chanel’s No.5 beauty department will get customers to respond. and Coco Mademoiselle, Estée Lauder’s Beautiful, Tom Ford’s “The business is going about as we expected,” said scents, Donna Karan’s Cashmere Mist and Dolce & Gabbana’s Pollack.“We’re still looking for midsingle-digit increases out of Light Blue. the fragrance category. While there are continuing fears that accessories and con- “It was a good start, but as usual after an early Thanksgiving, sumer electronics might steal beauty’s thunder, Karen Grant, se- there is a lull — that’s normal, but we’re focused on achieving nior beauty industry analyst for The NPD Group, isn’t worried. our plans.” He added that activity “is going to be late and very “There’s a lot of concern that these categories might capture intense, the last couple of weeks, but all indications are that most of the attention — but we are positive about this season,” we’re going to have a strong fi nish to the year.” she said. Grant noted that prestige fragrance sales rose 2 per- Competition within the store from other product categories cent in October — thought to be a harbinger for like electronics or apparel is no differ- the holiday — and outperformed both makeup, ent now than it has been in past years, which she said has been tracking as the number- Polo said Pollack. “We face that every year. one category, and skin care. “We’re hopeful be- Explorer Our merchandise has to stand on its own cause if fragrance does well in October, it gener- and compete.” Boosting his confi dence, ally also does well for the holidays,” she said. he said, are Belk’s efforts to target cus- Grant noted that 20 percent of total-year tomers. “We’ve done a good job of get- fragrance sales come in the two weeks before ting scents out there,” he said. “We’ve Christmas. “One of the things we’ve seen in the increased the number of scented pieces past few years is that sales are getting later and in our catalogue or direct mail. We think later,” said Grant. “It used to be that 35 percent of that’s going to help drive the fourth-quar- December sales were done in the last two weeks. ter business.” In 2006, 45 percent were done in the last two Additionally, Pollack said he’s an- weeks, with a lot of the sales rolling into the actual ticipating “a big TV media blitz [for fra- week of Christmas. This year, the hope is that won’t grance] in December, which is going to change. There will be another weekend in the cal- help the overall business. There’s more endar [between Thanksgiving and Christmas] this TV spend than we’ve seen in a long time year, so that should help boost sales. A lot of peo- [and that] will drive the gift-giving time Scents from Tom ple will wait until the very last minute. frame. And we’ve focused on in-store ex- Ford’s Private “What’s exciting is that there is a lot of new- ecution quite a bit.” Also, he said, there’s Blend collection. ness in men’s and women’s fragrances doing a balanced assortment of classic brands well,” she added. “Usher’s fragrances and Diddy’s doing well and strong new entries. Unforgivable for Women are particularly strong, So far, Chanel has been performing well on the women’s side. Daisy by Marc Jacobs and YSL’s Elle is also doing great business. As well, has been a strong new entry and Dolce & Gabbana’s The One has been “phenomenal.” the classics are doing well — Chanel No.5, Estée On the men’s side, Polo Explorer, Usher and Diesel have been “awesome.” Lauder’s Beautiful, Chanel’s Coco Mademoiselle, “Christmas is excellent — it is already excelling beyond our expectations,” said Donna Karan’s Cashmere Mist and Dolce & Robin Coe-Hutshing, owner of The Studio at Fred Segal. “All categories are doing Gabbana’s Light Blue. We expect to see growth in well — there’s defi nitely a ‘one for me, one for you’ thing going on — but home both classics and new fragrances for the holidays.” fragrances, men’s and women’s fragrances and skin care are doing very well. We Color cosmetics are also trending well. “Makeup just opened a Korres Apothecary [for the Greek bath, body and skin care line], and continues to be the strongest category we are see- L’Artisan Perfumeur’s home fragrances and Burn [Coe-Hutshing’s candle line] are Usher He and Usher She ing,” said Grant, naming MAC Cosmetics as a strong, as is Memoire Liquide. In skin care, Stem Organics is doing well. Clark’s standout. “It took over last year as the leader over Botanicals are doing well, as are Bubble Room, Diptyque, Tocca and Serge Lutens. fragrances. Part of what we’re seeing is that customers are buying as much for We’ve also brought in a slew of Australian brands.” themselves at this time of year as they are buying for anyone else — which might As a result of the weak dollar, Coe-Hutshing is seeing a large uptick in business, explain some of the upticks we’ve seen in both makeup and skin care.” particularly from Japanese tourists. “They think our prices [in the U.S.] are ridicu- Gift sets have been selling very well, no matter what the category, said Grant. lously cheap right now, and that’s defi nitely helping business.” “The bottom line is that the set business is much stronger than it’s been in a long “We’ve been meeting our plan and we’re excited about that,” said Marla Malcolm time,” she said. Beck, founder and chief executive offi cer of Washington-based Blue Mercury. And Grant noted that the weak dollar is enticing foreign shoppers to the U.S., “What we’re fi nding is the luxury client is buying the [uncommon] thing that particularly in tourist-heavy cities such as New York. “I think that will positively no one [else] has. They want newness and uniqueness. The trend toward the ex- affect the sales doldrums in some areas,” she said. otic is defi nitely there, products that are hard to fi nd.” Bestsellers among fragranc- Will the calendar this year — with that extra weekend day between Thanksgiving es include Serge Lutens’ Louve and Acqua di Parma’s Colonia Intensa and Iris and Christmas — help sales? Kreitzman is reserving judgment. “There is one extra Nobile scents. Also doing well are Creed Virgin Island Water and Trish McEvoy’s day between Thanksgiving and Christmas, and it is a Sunday, so it should be worth Blackberry and Vanilla fragrance. “Vanilla fragrances are doing well,” said Beck, a lot,” he said. “But Hanukkah is early, so that could hurt sales later.” “better than the fl orals.” She added “Men’s is doing much better than women’s [es- Many other things will affect sales this holiday, Kreitman pointed out. “The price pecially] on Creed.” Stand-out men’s scents include Creed’s Vetiver and Green Irish of gasoline, mortgage meltdown, Wall Street worries, the alignment of the planets,” Tweed scents. Kreitzman joked, “but as I was taught by a very wise man early in my career, I can’t “We have a mix of suburban and urban stores,” Beck said of the 26-store chain. do nothin’ about what I can’t do nothin’ about.” “The suburban stores are off the charts and the urban stores are trickier, because “Gift sets across all categories — color, skin care, fragrance and bath and body you get a wider economic base of clients in the urban stores. I think the economy is — are always a huge holiday hit for Sephora,” said Betsy Olum, senior vice presi- slightly impacting urban stores.” dent of marketing for Sephora. “Clients realize the incredible value they’re get- In skin care and color cosmetics, doctor and cosmeceutical brands are “doing ex- ting and are drawn to these limited edition items, many of which are exclusive to tremely well for us,” said Beck. “Our core strength is skin care. The Skinceuticals, Sephora. Additionally, the fact that these sets are not available at any other time of Dermalogica, MD Skincare and Darphin businesses have been immensely strong.” year makes them a unique and exciting gift idea. Macy’s Debbie Murtha could not be reached for comment. Inclusion of this mark is not intended to indicate authorization by its owner or association with the above mentioned trademark mentioned the above with or owner by association its Inclusion authorization ofis this to mark indicate not intended Company. & Gamble Procter The of trademark a registered is CLAIROL® MISS .
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©2007 bettybeauty inc. 12 WWD, FRIDAY, DECEMBER 7, 2007 The Beauty Report Mass Beauty Targets Natural Products for Growth atural and organic products continue to shake up personal care division. Whole Foods would not comment Physicians Formula is going natural with the launch of Nmass market beauty care. on its alleged initiative, but one source familiar with its Organic Wear, the fi rst certifi ed organic makeup line In the coming year, several natural product brands, standard said the new order will have products to be sold in the mass market. In January, the company which just recently entered mass retailers, will be merchandised based on how pure they are will introduce 42 color cosmetic items which contain the cut from planograms so merchants can focus only and what ingredients products do or do not Ecocert organic certifi cation, meaning 95 percent of in- on those that are actually performing. According contain. An overall industry standard is still gredients are of natural origin and at least 90 percent of to several industry insiders, Hain Celestial top of mind with Mike Indursky of Burt’s the total formula contains certifi ed organic ingredients Group’s various brands will be feeling most of Bees, who earlier this year announced produced on organic farms. Over in the hair care aisle, the heat, namely its Alba and Jason Natural plans to conceptualize and carry out a a new hair color from P&G’s Clairol brand will land on ranges. Instead, said sources, retailers will begin standard that would help put the indus- shelf in the fi rst half of 2008 that looks to cut at-home developing their own standards of natural, and try and consumers on the same page as chemical processing to a mere 10 minutes. The new line replenish their mix accordingly. One retailer far as what is natural and what is not. will have a formula that is ammonia-free, permanent and currently mulling over a natural product stan- Indursky just returned from Europe strong enough to cover gray hair. Also coming in 2008 is dard is Whole Foods Market. “They are chang- where he met with offi cials to discuss Maybelline New York’s entry into minerals, a category ing the way they admit products into its Whole the formation of a global standard for that at mass totals about $80 million. Maybelline’s effort, Body” department, said one manufacturer, who natural products. said company executives, looks to almost double the cat- met recently with Whole Foods buyers and is Several hot launches also look to egory in its fi rst year. looking to get placement into the grocery chain’s Burt’s Bees items. keep mass market beauty fresh and new. — Andrea Nagel Beauty’s Retail Sprawl Celebs Keep Scent Deals Fresh s the future of the fragrance business written in the stars? A hoppers are buying beauty in more places, and soon they’ll have more stores to encour- Iquick glance at next year’s celebrity-powered launches makes Sage that habit. Some beauty retailers — namely Ulta, Bluemercury, Bare Escentuals and one thing quite evident: this trend isn’t ending anytime soon. Sephora via J.C. Penney — have unrolled blueprints for aggressive store growth, which in In addition to the already scheduled projects of Jennifer most cases will accelerate in 2008. Regis Corp. plans to ratchet up the competition by trans- Lopez and Tim McGraw (from Coty) and Sean “Jay-Z” Carter’s forming its 630 Trade Secret stores into “beauty boutiques,” which in addition to professional Rocawear (by Elizabeth Arden), Christina Aguilera’s fragrance, hair care will carry skin care and cosmetics. It’s a model that bares a striking similarity to being produced by Procter & Gamble, is set to launch in the that of Ulta, the beauty retailer that houses salon, mass market and increasingly prestige U.S. next year. And the hottest rumor these days is that for- brands under one roof. mer Friend Jennifer Aniston is about to join this constellation: Ulta, the Romeoville, Ill.-based Aniston is said to have shot a fragrance campaign and may Inside Bluemercury. retailer that went public in have been in discussions with Elizabeth Arden, Coty and October, has built a chain of the Estée Lauder Cos. Inc. Aniston’s rep did not return some 236 stores located in a request for comment by press time. suburban off-mall shop- Aguilera launched an eponymous fragrance in ping centers, and plans Europe in October, although sources say that the to end the year with 250 Aguilera scent planned for a U.S. launch in fall 2008 doors. Ulta’s president will be a different fragrance entirely, one concocted and chief executive of- specifi cally for American tastes. fi cer, Lyn Kirby, said the The top notes of Aguilera’s European scent are of chain has the potential to fruit sorbet, sparkling tangerine and fruity blackcur- grow to 1,000-plus stores rant tea; its heart is of peony, jasmine and plum, and over the next decade. the drydown is of amber, creamy vanilla and musk. “To In high-end shopping me, jasmine has always been synonymous with old movie hubs, the Washington D.C.-based star glamour,” said the singer in a statement on P&G’s Web Bluemercury aims to reposition it- site. “It is such a beautiful scent and has great heritage in tra- self from a Northeastern beauty apothecary ditional perfumery, which I love. The blackcurrant tea note for into a national player. The 26-store chain me captures the vibrancy and happiness of my honeymoon. Its — which is now in Los Angeles, Chicago, fruity, mouthwatering scent reminds me of sitting on our Bali Philadelphia and Princeton, N.J. — plans to veranda in the heat, looking out over the most gorgeous sunset open 30 more doors in 2008. The fi rm wants while sipping a cool, refreshing cocktail.” to maintain a 30-stores-a-year pace and A TV commercial featuring Aguilera was shot in Los Angeles reach 300 stores by 2010, said Marla Malcolm earlier this year for the European fragrance. The spot features Beck, founder and ceo of Bluemercury. a sultry Aguilera in full hair and makeup and a cream robe in The mineral makeup brand Bare Escentuals, which is sold in both Ulta and Sephora, contin- a designer-fi lled dressing room, trying to decide what to wear. ues to open its own stand-alone brand boutiques and has earmarked a long-term target of 400 She then heads toward her fragrance bottle, on a nearby dress- such stores. Of its 33 company-owned boutiques that have been open for the year ended Dec. 31, ing table, and picks it up. With her back to the camera, she 2006, Bare Escentuals’ average annual net sales during the period was approximately $1,800 a slips off the robe and sprays her back with the scent, which square foot, according to the fi rm’s annual report. then transforms into a black lace tattoo running across her For its part, Sephora — which has about 180 stores — has aligned itself with Penney’s and back. The campaign’s tag line is “Sometimes, it’s all you need in early 2006 began opening stand-alone branded boutiques in the department store. The to wear.” beauty shop has since opened in about 30 Penney’s doors, and Penney’s said it plans to ac- The name of the U.S. scent has not been released, nor have celerate the rollout of the Sephora concept next year. its prices or distribution plans. — Molly Prior — Julie Naughton
Need for Critical Mass Fuels Industry Acquisitions PARIS — PPR and Groupe Clarins. Coty and Del route to market, period, or to enter into emerging mar- to speculative reports that Clarins has entered into ne- Laboratories. Speculative reports have been rife that kets,” said one industry source who requested anonym- gotiations with PPR) that said: “To this date there ex- such companies are involved in M&A activities. ity. He explained another driver of M&A activity could ists no element of a nature to be made public.” The pairing of such names — and more — will prob- be the need for companies to keep their numbers up in According to some speculative reports, PPR could ably ramp up in the near term. And it won’t all be buzz, the event of an economic slowdown. offer its beauty division, YSL Beauté, to Clarins in said industry sources, who believe numerous beauty Further, fi nancial sources say they expect more return for up to a 30 percent stake in the company deals could be sealed in the months to come. private equity fi rms, particularly smaller funds, to — and even a right of fi rst refusal if the company is “There are midsized companies that will either de- attempt to unload their investments, given lack of li- eventually sold. cide to sell themselves or make acquisitions to reach quidity in the credit markets, and that the potential In the months to come, Ohana believes beauty com- a critical size to remain competitive,” said Karine onslaught of fi rms on the selling block will begin to panies will continue searching for organic and natural Ohana, partner in Ohana & Co., a boutique M&A fi rm in drive prices down. brands to buy, as well as holdings to keep them com- Paris. When it comes to fragrance manufacturers, criti- Meantime, the Courtin-Clarins family — with 65.1 petitive with pharmaceutical players. cal mass is key to building muscle needed to negotiate percent of Clarins’ capital and 78.6 percent of its vot- Market watchers wonder whether L’Oréal might ac- with retailers and for advertising’s sake, she explained. ing rights — has repeatedly said the company is not quire Natura or Shiseido and if Procter & Gamble will For cosmetics makers, it also concerns strengthening for sale, despite rumors to the contrary. Just last week, snap up a skin care company. And that’s just to name a research and development. Christian Courtin-Clarins, president and chief execu- few M&A possibilities being bandied about. “Companies might make acquisitions to gain either tive offi cer of the fi rm, issued a statement (in response — Jennifer Weil WWD, FRIDAY, DECEMBER 7, 2007 13
WWD.COM
Chloé and the Gap. In product news, are sold in 300 salons worldwide. Shevy Maybelline’s Defi ne-A-Lash Volume Wigs generates about $1 million a year. mascara and VolumeXLSeduction lip color enter stores in January. ZIRH EXPANSION: Men’s skin care marketer SNIPPETS Zirh Holdings LLC, which was purchased ROYAL BEAUTY: Liz Earle and Kim Buckland, from Shiseido in August by a group of co-founders of Liz Earle Naturally Active investors lead by the brand’s former owner, COOLA AS A CUCUMBER: Not much can stop for hydration, marine actin peptides to Skincare, were awarded MBEs (an honor Brian Robinson, is bolstering its marketing Hollywood based-Coola, a new player in repair damaged hair, vegetable proteins awarded for outstanding achievement, and distribution efforts. Zirh has signed the sun care market. The fi rm’s Pasadena to strengthen the hair and moringa seed which stands for Member of the Order of a deal with Quadrant Cosmetics Corp. for warehouse recently burned down — thought and edelweiss extract for protection from the British Empire) in recognition of their distribution of the Zirh brand in Canada, to be a result of the fi res destroying much pollution and UV rays. Plump will be sold services to the beauty industry. Earle, a writer an agreement that will take effect on Jan. of the neighboring region — and that left in Neiman Marcus and Fekkai salons and broadcaster on the beauty industry, and 1. Additionally, Zirh has named Alyssa Coola’s husband-and-wife founders with a beginning in January. Buckland, a beauty marketer, launched the Truppelli to the post of Internet marketing mountain of explaining to do to vendors. Liz Earle Naturally Active Skincare range in director. Most recently, Truppelli was e- “We were basically getting product back 1995, a botanical-based skin care brand that commerce manager at MAC Cosmetics. Zirh from some vendors in order to fulfi ll Model Jessica now boasts its own London-based store. The has also named Sindhya Valloppillil product orders to more high-priority vendors,” said White joins company employs more than 200 people. development manager. Previously, Valloppillil Christian Birchby, who along with his wife, Maybelline as a has worked at Johnson & Johnson and Kristian, founded the line after both sets spokeswoman. WIGGED OUT: Wigs are poised to overtake Limited Brands in various divisions. of parents were undergoing treatment for the hair extension craze, predicts Shevy melanoma. The line includes a Face SPF Emanuel, founder and owner of Shevy Pro, PACKING A PUNCH: In a move to 30, enhanced with organic cucumber the Brooklyn-based maker of premium demonstrate the reality of packaging extracts; Total Body SPF 30, made with wigs. Her wholesale and retail business waste, British design agency Pearlfi sher organic plumeria extracts, and Sport SPF has tripled in the past fi ve years, she unveiled an exhibition entitled “Destination 45, with organic mango extracts. Unscented said, primarily because women and Landfi ll” last week. A gallery space at the versions of each are also available. Products hairstylists are fi nding that hair extensions fi rm’s London studio has been transformed retail between $28 and $30. The one are unable to provide the quality wigs into a waste pile littered with a mishmash good thing about the fi re? “It gave us the can. “The market is going away from of 386 products, some of which feature opportunity to replace all formulas with extensions,” she said, moving instead packaging designed by Pearlfi sher. Nik PABA-free ones,” said Birchby. toward wigs such as hers, which use only Ramage, a mechanical sculptor, engineered Caucasian, unprocessed hair from Europe three machines to haphazardly compress PLUMP IT UP: Continuing his brand’s — mainly Russia — and are hand-sewn the “waste,” which includes Jo Malone mission to develop hair care solutions as if at a manufacturing facility in China. fragrances, Nude treatment products, treating skin, Frédéric Fekkai is launching Most extensions, she said, use either cartons of fresh milk and chocolate bars. All Day Hair Plump within his existing synthetic hair or hair from Asia or India, Jonathan Ford, Pearlfi sher’s creative Fekkai Advanced Hair Care range. The $95 which largely yields dark hair that then partner, said the exhibit is meant to daytime leave-in treatment is designed to JIM SPELLMAN/WIREIMAGE PHOTO BY needs to be dyed. Her 4,000-square-foot motivate clients and consumers to choose be applied in the morning on damp hair to salon, Shevy, on Coney Island Avenue in more ecologically sustainable packaging provide moisture throughout the day while WHITE JOINS MAYBELLINE: Maybelline New Brooklyn, currently stocks between 4,000 alternatives by simulating the life cycle of “plumping up” hair cuticles to strengthen York has named model Jessica White as and 6,000 wigs, in an assortment of hair products. The exhibition, which hair. Like several upscale skin cremes, a new face for the brand. White is best colors, textures and lengths. Her wigs, opened to the public Thursday, will run Plump contains hyaluronate humectants known for her work in ad campaigns with which sell between $2,000 and $4,500, until Jan. 25. 14 WWD, FRIDAY, DECEMBER 7, 2007
The HBA Report WWD.COM The Price of Exclusive Brands By Faye Brookman and Molly Prior factored in issues such as damages, liabili- brands from the ground up. the retailer, the greater amount of time a ty of discontinued shades and promotional CVS also counted the Finnish-born manufacturer has to make it a success. rom the first time discount chains residuals. Although margins exceeding 60 beauty line, Lumene, among its exclusive Industry sources also said retailers Fand drugstores began tinkering with percent to 70 percent are alluring, other brands until last spring when the brand give their exclusive brands compelling exclusive lines about a decade ago, na- costs such as damages, markdowns and rolled out to Target doors as well. CVS, fi nancial breaks. For instance, to partic- tional brand manufacturers were wary. fi xtures diminish the profi ts of exclusives. which introduced Lumene to the U.S. ipate in a retailer’s weekly circular, a After all, retailers often clip space Ironically, these are the same issues hin- market in 2003, might reap the rewards national brand, such as L’Oréal Paris or from national brands — backed by multi- dering vertical retailers, such as Bath & of the beauty fi rm’s expansion, particu- Cover Girl, could expect to pay roughly million dollar advertising campaigns — to Body Works, from enjoying the benefi ts of larly as Target helps to shoulder market- $100,000 to $150,000 an ad, noted manu- make room for their exclusive offerings, their outside brands. Walgreens declined ing costs and promote consumer aware- facturers that asked not to be named. which are either plucked from Europe to comment on the productivity of its ness. What’s more, one industry source Vendors that sell their goods exclu- or created in partnership with a small European Beauty Collection — an assort- suggested that retailers may decide to sively in that retailer get preferential manufacturer. In either case, the enter- ment of seven foreign-born skin release their exclusives to other noncom- treatment, which includes discounted prising efforts require a strong peting retail channels provided advertising rates and, in many cases, partnership and a hefty the brand pay them royalties on free exposure in the circular and di- investment from the re- their sales there. rect-mail pieces. tailer. If they don’t work, Boots from the U.K. was the In the last year, retailers also seem the retailer will feel fi rst European brand to deftly to be giving exclusive lines a longer the pinch. But for every carve out a quasi-exclusive dis- time frame to make a go of it, because failed attempt — name- tribution arrangement with two retailers know they have the power to ly Walgreens’ exclusive U.S. retailers simultaneously make their exclusives successful, ob- cosmetics line IsaDora served several vendors. Retailers that — there is a new entry. have unlocked benefits of exclusive Case in point: Last week CVS lines include Shoppers Drug Mart, with unveiled 27.4 Skincare, a fi ve-item anti- ADDING UP BEAUTY its house brand Quo; Ulta and Sephora, aging line, in its newly opened midtown with their proprietary lines, and Target, Manhattan store. with Sonia Kashuk cosmetics. Referring to retailers’ typical ar- by partnering with both a In each of these cases, industry ex- rangements with national brands, Jesse drugstore chain, namely perts said there is a dedicated team of Lawrence, president of CRL Marketing, CVS, and a discounter, Target. retail executives and consultants working a fi rm that develops proprietary beauty For vendors who already exclusively on the brands. The makeup lines, said, “When products don’t sell, distribute goods overseas, artist Sonia Kashuk is featured in Target often they go back to the supplier. [With striking exclusive deals commercials giving credence to the line. exclusives] retailers quickly fi nd out they with U.S. retailers can However, Target doesn’t always don’t have anyone to go back to. Exclusives offer less risky ways to hit a home run. It appears the chain do have their place, but only when the re- introduce their brands has scaled back its specialty bath and tailer lets the supplier control it.” Stateside — in some body collection — once chock-full of Lawrence’s fi rm has created targeted cases a deal with a European lines — to make room, once exclusives, including the youthful cosmet- JOHN AQUINO CVS PHOTO BY U.S. retailer may sim- again, for national brands. ics line Jesse’s Girl, which is sold at Rite CVS’ Boots display and ply require them to slightly Exclusive brands plug into shoppers’ Aid. “Our sales are true sales. A customer Walgreens’ IsaDora cosmetics. increase production. For smaller fondness for discovery, which is in part walks in and buys it because she likes it manufacturers, an exclusive deal might what underpins the success of upmarket and it’s a good price,” he explained. care brands — but the company said it is secure an entire line shelf space in a na- retailers such as Saks Fifth Avenue and What many retailers are discovering is pleased with results from another recent tional retailer, rather than have multiple Sephora, said Mottus. Referring to the that it takes a great deal of time and effort exclusive, Yes to Carrots, a natural skin retailers cherry-pick items. One manufac- need for niche, exclusive lines in the to not only merchandise the exclusive offer- and hair care line. turer said exclusive deals usually garner mass market, he declared, “The beauty ing, but also to take on the role of marketer. Duane Reade’s proprietary beauty more of an interest and investment from industry was too monolithic. Sephora The most recent exclusive beauty line line, Apt. 5, looked the part of an up- a powerhouse retailer. The manufacturer showed that it didn’t need those big oli- to exit mass retail is Walgreens’ IsaDora, scale line, but failed to generate the added the more strategic the program for garchs” to entice shoppers. a Swedish-born cosmetics line. Walgreens sales needed to give it staying power. added IsaDora to its beauty mix in 2003 Duane Reade introduced the cosmetics and the fashion-driven color line had a line in May 2002, and later expanded solid run there. Walgreens proclaimed it to bath products and beauty tools. its confi dence in the exclusive line by dis- Despite its good looks, Apt. 5 turned playing IsaDora on a 4-foot wall display, off some New Yorkers and the line was Beauty Biz Fetes Winners positioning it to go head-to-head with dropped from the retailer’s mix earlier Members of the beauty industry gathered at the Four Seasons restaurant beauty stalwarts Maybelline and L’Oréal. this year, said industry sources. It is still Thursday to celebrate industry achievements at the fi fth annual WWD Beauty It also expanded IsaDora’s assortment available on the drugstore chain’s Web Biz Awards. From longtime retailers to new brands, the awards covered a broad last spring by introducing a mineral site, as Duane Reade clears through in- spectrum of categories and drew such heavy hitters as William Lauder, Aerin makeup collection, which launched in ventory. An industry observer noted the Lauder and John Demsey of the Estée Lauder Cos., Coty Inc.’s Bernd Beetz and Walgreens fi rst and later was slated to ex- new management team brought onboard Catherine Walsh, indie entrepreneurs Robin Coe-Hutshing and Jennifer Coe- pand to the line’s European markets. two years ago decided to cut Apt. 5, Bakewell, newly minted beauty mavens Jillian Dempsey and Lisa Hoffman, However, Walgreens plans to discon- which had seen sales level off and was P&G Prestige’s Don Loftus, eco-pioneer Mike Indursky of Burt’s Bees, Eric tinue IsaDora and has cut the line from its in need of an update. For retailers, the Lauzet of Lancôme and many more. 2008 planogram, said a Walgreens spokes- source added, to support a home-grown — Megan McIntyre woman. A spokeswoman for IsaDora de- line like Apt. 5 they have to have the A total of 25 awards were presented. Mass: Mike Indursky, chief marketing clined to discuss the brand’s future U.S. wherewithal to absorb the costs of up- They were: offi cer of Burt’s Bees (person); Soap & plans, but said its Web site will be re- dating display fi xtures and markdowns. Glory (company). launched to accommodate Internet sales. CVS Pharmacy has steadily expand- Breakthrough Product of the Year, One industry source noted that despite ed its portfolio of exclusive brands in Prestige: Aveda Men (hair care); Lipstick Newcomer of the Year: Lisa Hoffman Walgreens’ best efforts, IsaDora’s low pro- recent years, particularly in skin care. Queen by Poppy King (color cosmetics); Skin Care (products); My Blend by Dr. ductivity and slow product turns did not Its proprietary brands include Essence Care by Stella McCartney (skin care); Olivier Courtin (brand). justify its generous display space. The of Beauty, Skin Effects by Dr. Jeffrey Memoire Liquide (fragrance). source added IsaDora likely gobbled up Dover and now 24.7 Skincare. Most Innovative Ad Campaign: Estée too much time from both Walgreens’ mar- CVS created the 24.7 Skincare line in Breakthrough Product of the Year, Lauder Private Collection (prestige); keting and merchandising teams. partnership with Cos Brands, a spin-off Mass: Clairol Nice ’n Easy Hair Color Cover Girl (mass). Industry consultant Allan Mottus, re- company of the high-end skin care fi rm Collection (hair care); Jillian Dempsey ferring to IsaDora, said, “The prices are Freeze 24/7. The effort is being led by Mike for Avon (color cosmetics); Dove Pro- Best Executed Launch Strategy of the just too high and Walgreens appears to be Freedman, an initial investor in Freeze Age (skin care); Mustang by Aramis and Year, Prestige: MAC Loves Barbie (color backing off beauty a little.” Mottus noted 24/7, whose experience also includes Designer Fragrances (fragrance). cosmetics); Lancôme Primordiale Cell Wal-Mart, Kmart, Target and dollar stores Gillette. Deb Armstrong, CVS’s divisional Defense Double Performance Cell tend to price their wares 15 percent below merchandising manager for beauty care, Retailer of the Year: Bloomingdale’s Defense & Skin Perfecting Serum (skin Walgreens. “With IsaDora, Walgreens said the antiaging line — which relies on (prestige); Henri Bendel (specialty); care); Giorgio Armani Parfums (fra- didn’t have to worry about being undercut gamma-aminobutyric acid, an amino acid CVS Pharmacy (mass). grance). on price by the discounters,” said Mottus. said to help diminish wrinkles — would Lawrence declared, “Here’s my opin- be the cornerstone for the expansion of Most Innovative Marketer of the Year, Best Executed Launch Strategy of the ion: A woman walks in, likes IsaDora 24.7 into other categories. Prestige: Catherine Walsh, senior Year, Mass: Physicians Formula (color but looks at the price and hasn’t heard Over the last decade, CVS has exper- vice president, American Fragrances, cosmetics); Garnier Nutritioniste (skin of it and picks something else.” imented with a host of exclusive offer- Coty Prestige (person); P&G Prestige care); Organix (hair care). Another manufacturer familiar with ings. Its most recent initiatives, includ- Fragrance (company). exclusive lines said Walgreens may have ing Skin Effects and 24.7 Skincare, seem For full coverage, see today’s issue of found the line diffi cult to manage. to indicate CVS’s interest in partnering Most Innovative Marketer of the Year, WWD Beauty Biz. Some surmise Walgreens may not have with experts rather than building house save the date may 12—14 the breakers palm beach Join more than 175 senior beauty executives in Palm Beach for three days of future-focused insights and strategies.
For more information, please call 888.901.3247 or email [email protected]
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•WWD_Beauty_AD_120707_FINAL_MECH1 1 12/6/07 2:09:48 PM 16 WWD, FRIDAY, DECEMBER 7, 2007 WWD.COM November Sales Give Hope for Holiday
By Liza Casabona tions, prompting the retailer to remain cautious on December and causing some concern in the s retailers posted better-than-expected markets. Target’s stock closed down 7.58 percent NOVEMBER SAME-STORE SALES Asame-store sales for November, the true read to $55.57 on Thursday. — total sales — on the kickoff of the holiday shop- Bob Ulrich, chairman and chief executive of- ping season showed robust results. fi cer of Target, said its post-Thanksgiving event The strong sales, coupled with leaner inven- helped sales meet its expectations for the month, NOVEMBER OCTOBER SEPTEMBER tories at most retailers, temporarily faded prior but softness during the last week kept the number concerns that eroded gross margins would weaken short of the company’s planned range. The key profi ts in the fourth quarter. Still, November same- shortfalls were in seasonal categories like toys 2007 2006 2007 2007 store sales warranted scrutiny as a calendar shift and holiday trim, but Ulrich said other home and % CHANGE % CHANGE % CHANGE % CHANGE may have artifi cially infl ated results. Some retail- apparel categories were off as well. ers urged Wall Street to look at the November- “These sales trends would need to meaning- December period before making any conclusions. fully improve in December in order to achieve DEPARTMENT STORES Eric Beder, a teen and specialty retail equity fourth-quarter EPS growth,” Ulrich said. analyst at Brean Murray Carret & Co., said in a The International Council of Shopping Centers BON-TON 8.6 -10.5 -3.2 -7.1 research note that he believes “the fruits of retail estimated that between 0.75 and 1 percentage DILLARD’S 1.0 -3.0 -7.0 -7.0 management’s drive to reduce inventories will points of the November year-over-year sales growth begin to bear fruit in December. We believe dis- is attributable to the date shift this year which in- MACY’S INC. 13.4 8.5 -1.5 -2.7 counting in our universe is in-line with last year’s fl ated numbers for some retailers, according to a GOTTSCHALKS 0.4 -0.9 -3.0 -3.9 levels, which should allow for margin integrity.” statement. November appears to have the strongest Total sales for the month quantifi ed top-line monthly sales increase since March of this year KOHL’S 10.2 3.7 -3.8 -3.2 strength across all three major channels. Of the re- when it climbed 5.9 percent, but the calendar shift NEIMAN MARCUS 5.8 2.9 8.5 6.0 tailers tracked by WWD, the specialty stores post- must be taken into account, the ICSC said. ed a total sales gain of 15.8 percent for November, “Adjusting for the calendar quirk, November sales NORDSTROM 8.7 5.4 -2.4 3.2 while sales in department stores swelled 12 per- were in-line with fi scal-year trends,” said Michael J.C. PENNEY 2.6 1.4 -1.8 -4.6 cent and mass retailers gained 8.4 percent. P. Niemira, ICSC’s chief economist and director of MasterCard said in its research. “We continue to ex- SAKS 25.7 7.2 10.6 7.7 SpendingPulse report that Target reported pect comparable-store sales to STAGE STORES 3.6 0.2 -2.9 2.3 retail “sales in November im- a 10.8 percent increase by 2.5 percent during AVERAGE: 8.0 1.5 -0.7 -0.9 proved in a number of sectors comp-sales gain. the holiday season (November- as the holiday season took off December).” ICSC said it ex- on a positive note.” But the pects growth of 1.5 percent in SPECIALTY CHAINS gains were mostly outside the same-store sales in December. apparel category, although a The calendar shift could ABERCROMBIE & FITCH 2.0 -3.0 -2.0 -4.0 recent cold snap has jolted ap- make looking at the holiday AEROPOSTALE 6.6 1.0 3.0 1.3 parel sales. season as one complete piece “Much of the boost in even more imperative than it AMERICAN EAGLE 0.0 10.0 -3.0 -2.0 November’s sales was due to has been in past years, said ANN TAYLOR 3.9 -4.3 -4.2 0.5 increases in electronics sales, retailers and analysts. which, benefiting from hot “This calendar shift will BANANA REPUBLIC 4.0 -1.0 -2.0 -2.0 product promotions, grew at a result in our December sales BATH & BODY WORKS -6.0 16.0 -6.0 -2.0 12 percent rate,” MasterCard being lower than last year. It is said in its report. “Men’s ap- important that the November- BUCKLE 18.2 4.2 14.9 10.9 parel sales grew 7 percent, December holiday selling pe- CACHE -4.0 8.0 -3.0 3.0 just slightly more than total riod be viewed together rather apparel sales (6.9 percent), than each month individually,” CATO -6.0 -2.0 -8.0 -7.0 helped by holiday shoppers re- said Terry Lundgren, chair- THE CHILDREN’S PLACE 3.0 8.0 2.0 -3.0 sponding to the cooler seasonal weather across the man, president and ceo of Macy’s, in a statement. Northern regions. Lagging sectors for November Macy’s posted a 13.4 percent increase in same- CHICO’S FAS -13.7 -0.4 -10.6 -8.3 overall included women’s apparel (down 3.9 per- store sales, well above predicted growth. Sales CHRISTOPHER & BANKS 1.0 -8.0 22.0 1.0 cent), furniture (a 3.5 percent drop) and furniture/ were driven by colder weather in November as furnishings (down 1.4 percent).” well as the calendar shift, Lundgren said. GAP (U.S. STORES) 1.0 -7.0 -7.0 -10.0 For November same-store sales, department Kohl’s chairman and ceo Larry Montgomery HOT TOPIC -8.3 -4.3 -4.0 -2.9 stores were the big winners in the month, posting said Kohl’s benefi ted from the calendar shift, but an average comp-sales increase of 8 percent. The that was expected. The store also did well in the LIMITED BRANDS -7.0 12.0 -6.0 -4.0 segment was buoyed by double-digit results at Saks outerwear and cold weather accessory categories MOTHERS WORK 0.0 -1.3 -3.9 -7.0 Inc., Macy’s Inc. and Kohl’s Corp., which reported due to the shift in weather. gains of 25.7, 13.4 and 10.2 percent, respectively. Calendar shifts aside, the November results OLD NAVY -3.0 -10.0 -11.0 -8.0 The specialty chain stores turned in mixed re- were exceedingly mixed, even within segments, PACIFIC SUNWEAR 2.3 -3.8 -0.8 2.7 sults. The segment had an average comps decline of said Patricia Walker, partner in the consulting RITE AID 0.9 2.9 0.4 0.7 0.2 percent for the month. Aéropostale Inc. reported fi rm Accenture. The high-end retailers were still a 6.6 percent increase in same-store sales, higher strong across the board, but in other segments the VICTORIA’S SECRET -8.0 14.0 -7.0 -6.0 than its own guidance and Wall Street estimates. variation between the winners and losers was sig- WALGREEN 4.4 NA 6.9 4.7 Gap Inc.’s Banana Republic and Gap banners both nifi cant, she said. turned in better-than-expected performances, with Overall, sources cautiously said this holiday WET SEAL -1.7 5.5 -5.4 -7.0 increases of 4 and 1 percent, respectively. season could prove to be less of a downer than WILSONS 0.4 -19.1 -21.8 -13.0 The mass merchant segment clocked an aver- was initially predicted. age gain of 3.8 percent for November. Wal-Mart “Although conventional wisdom is that this ZUMIEZ 5.6 12.1 5.1 13.9 Stores Inc. increased 1 percent, within guidance. holiday season is the worst in years, those of AVERAGE: -0.2 1.3 -2.1 -2.0 TJX Cos. Inc. reported 7 percent comps, well us who witnessed hundreds of people in line at above analyst estimates. 4:45 a.m. two Fridays ago in front of Best Buy, Target Corp. had the highest same-store sales, Wal-Mart and elsewhere — or stood in lines doz- MASS MERCHANTS with a 10.8 percent increase. But the company ens deep at Kohl’s, or back-countried Woodbury was toward the lower end of its guidance. Despite Common to avoid the 12-mile backup in each di- BJ’S WHOLESALE CLUB 7.7 0.6 1.4 3.9 the better-than-expected results for several key rection on I-87 — think this may be a fairly de- COSTCO 6.0 4.0 2.0 4.0 retailers in November, analysts and industry ob- cent one for most of the nation’s retailers,” said servers remained cautious. Craig Johnson, president and ceo of consulting ROSS STORES 3.0 0.0 4.0 0.0 Industry observers argued that the calendar fi rm Customer Growth Partners. Women’s wear STEIN MART -8.9 3.8 -5.2 -9.1 had an additional positive impact on same-store and home improvement retailers could still be in sales numbers this month. The shift included an a rough patch, he said, but overall retailers could TARGET 10.8 5.9 6.1 1.2 extra week in November versus last year, and this survive the holidays in fi ne shape. TJX COS. 7.0 3.0 4.0 2.0 could give an artifi cially bright picture of results In the midst of continued macroeconomic pres- at some retailers, analysts said. Among the retail- sure on consumers, fi nancial experts and economists WAL-MART (DISCOUNT STORES) 1.0 -0.5 2.8 0.8 ers who reported that way were Nordstrom Inc., are reluctant to call the outcome of the holiday sea- AVERAGE: 3.8 2.4 2.2 0.4 Kohl’s, Macy’s, J.C. Penney Co. Inc. and Target, son without results from December and January. according to analysts’ notes. Results for those re- “What we are seeing here is another slightly tailers should be viewed cautiously, they said. positive development for consumer spending that TALLY: Many retailers acknowledged the role the cal- defi es what has generally been a very bearish UP 29 23 15 18 endar shift played in their November fi gures in tone for the economic outlook,” said John Lonski, their sales releases. Target reported two numbers chief economist at Moody’s Investors Service. FLAT 2 1 0 1 for the month — same-store sales were up 10.4 per- That could be a sign that analysts and media DOWN 10 16 26 22 cent, but the company said on a “calendar-adjusted are getting carried away with downbeat predic- basis” same-store sales were up just 1.1 percent. tions for the economic outlook, Lonski said, but TOTAL 41 40 41 41 The company went on to warn that some key few are willing to be less cautious until the credit categories within the store did not meet expecta- market stabilizes. WWD, FRIDAY, DECEMBER 7, 2007 17 WWD.COM Hilfi ger Denim Paves Road to Retail By Sharon Edelson “Going forward, we will operate dif- ferent store formats around the world as NEW YORK — Hilfiger Denim’s first U.S. well as in the U.S.,” said Fred Gehring, store, a 3,700-square-foot space in SoHo chief executive offi cer. “A limited number opening today, underscores the compa- of larger stores offering the total brand ny’s commitment to retail growth. will include a Hilfi ger Denim department “We will make sure we can tell the or fl oor. There will also be stores exclu- story in more places than just a few,” said sively offering Hilfi ger Denim, stores of- Gary Sheinbaum, president of Tommy fering only sportswear and, in the future, Hilfi ger retail. Once the store gets off the stores offering only women’s wear and ground, “we’ll look for the next round of children’s wear.” locations. There are lots of ways to do Hilfiger Denim has the egalitarian this, even in 1,800 square feet.” goal of appealing to a diverse customer Tommy Hilfi ger in September opened base with more than 70 different fi ts and its first women’s-only store, an 825- washes. square-foot unit on Bleecker Street here. “Denim is the second biggest business Before that, Hilfi ger had not launched a after sportswear,” Sheinbaum said. U.S. store since 2001, and in 2002 closed In the SoHo store, a selection of vin- 37 of its 44 U.S. specialty stores. tage clothing is distinguishable by the The company was sold to Apax plain metal dry cleaner’s hangers to Partners last year and is being reposi- which pieces are pinned. Prices range tioned, including an exclusive deal with from $60 for a men’s tie to $1,200 for a PHOTOS BY JOHN AQUINO PHOTOS BY Macy’s, as well as an effort to raise the leather jacket. The youthful, edgy feel inside Hilfi ger Denim. quality and design of its ready-to-wear. Prices for jeans are $98 to $175. A lim- Hilfi ger Denim launched in Europe ited edition collection of Selvedge denim hung with silver globes. The focal point seven years ago and has about 50 units signed by Tommy Hilfi ger sells for $375. of the store is an LED chandelier, which overseas, but is unknown in the U.S. Nonsigned Selvedge pieces are $250. changes colors and can display projected Brand director Michael Arts, alluding to “The quality of fabrics and washes is images. Arts said it’s a nod to the instal- the company’s transition and the delay much higher than we’ve ever had in the lation art scene of the Seventies. Framed in coming to the U.S., said: “The reason U.S.,” Arts said. Women’s denim jackets vintage posters fill the walls — Jimi we’re coming here now is that we had a are $189.50; red cotton dresses, $89.50; Hendrix, 7-Up, Op-Art patterns and a lot of other things to do.” white puffer jackets, $149.50, and black neon pink Motel sign — and are for sale. Hilfi ger Denim is the company’s fourth leather coats, $500. Reproductions of Arne Jacobsen’s egg full-priced store in the U.S. And there are The space at 500 Broadway grooves to chair, Seventies Mod plastic chairs and more in the works. Men’s and women’s a disco beat, a theme chosen because the a Florence Knoll design are scattered sportswear stores will open in the spring denim customer is “more youthful, edgier throughout the store. A DJ booth will be in the Georgetown section of Washington and a little hipper,” Arts said. occupied on weekends and during spe- and Miami’s South Beach. A garden be- Disco balls dangle from the ceiling, and cial events, but the playlist won’t be lim- hind the South Beach store will lead to a the fl oors, columns and ceiling are paint- ited to disco. surf shop in a separate building. ed black. There are black leather rugs and In the dressing vestibule, a long wall Sheinbaum said overall, Tommy Hilfi ger the 300-square-foot cash wrap is designed covered with insulation and foil paper is looking for upscale, highly visible street to look like a bar, covered in black leather is intended for shoppers to leave their locations and is aggressively pursuing A- and with acrylic bar stools. All that’s miss- marks by scratching out their initials or list mall locations. “We’re relaunching into ing are velvet ropes outside. writing a saying, just like the high school the retail business,” he said. Exposed trusses à la Studio 54 are bathroom or the restroom of a disco.
GIRLS’ NIGHT OUT: ’Tis the season for shopping and charity. Amid the whirlwind of events this week, clotheshorse and political activist Shiva Ralph Lauren Rose hosted a shopping party with W magazine on Tuesday night at Fashion Scoops Mulberry’s Melrose Place boutique to benefi t the war-relief nonprofi t No More Victims. The hostess wore Mulberry’s Victorian silk dress and her Growing at BG PIANO MAN: Most executives know the value of a little marketing, and singleton pals, Ryan Haddon and Alexandra von Furstenberg, were equally NEW YORK — Polo Ralph Lauren it seems the Archbishop of New York is no exception. On Thursday well turned out, as were up-and-comers Jud Tylor (yes, she’s a girl) and plans to bring a new lifestyle con- afternoon, Cardinal Edward Egan presented the Catholic Charities Michelle Borth. Though guests shopped the current season, they also cept to Bergdorf Goodman, which Christmas Angel Award to Josie Natori at a lunch at the Waldorf-Astoria got to preview the spring will involve doubling the size of before an audience of 600 that included former governors Mario Cuomo collection, where the vinyl the existing in-store boutique on and George Pataki, as well as police commissioner Ray Kelly. Before the Roxanne tote was a hit, the store’s sixth floor. The boutique presentation, Natori introduced Egan to some of her guests, one of whom, especially with its three- aims to bring together the world of he was told, works for this paper. “In that case,” he said, “I hope you’re fi gure price point. One Ralph Lauren, mixing pieces from doing full-page stories on Natori and Cruz.” holiday shopper remarked, Ralph Lauren Collection and Black Apparently, the event helped to forge a friendship and, just possibly, “It would make a great baby Label lines as well as vintage looks a duet made in heaven. In his remarks, Egan told the crowd that he and bag for Halle Berry.” and an assortment of accessories. Natori have made tentative plans to tinkle the ivories together in a concert Meanwhile, a few doors Currently, Lauren’s boutique at at her New York apartment sometime soon. “We’ll knock the ball out of down, the starlets and Bergdorf ’s focuses on the Black the park when we sit down with ‘Schumann’s Concerto in A minor,’” he socials turned out at the Label line. said. “She’s my fellow piano player. Except,” he corrected himself, “she’s Oscar de la Renta Home “This is something that we have a pianist. I’m a piano player.” boutique for a “Vogue Living: wanted to implement for some Houses, Gardens, People” time,” said Jacki Nemerov, Polo’s ST. JOHN ROCKS HOLLYWOOD: What a book signing by Hamish executive vice president, in a difference a year makes. A new chief Bowles. Ginnifer Goodwin, statement. “It is an exciting oppor- executive offi cer, the return of Kelly and Jacinda Barrett, Jennifer tunity for us to present our brands Marie Gray to the design team and a Morrison, Cameron Richardson JOHN SHEARER/WIREIMAGE PHOTO BY together in a cohesive atmosphere, positive response to new product appear and Angie Harmon joined Jacinda Barrett and Angie Harmon allowing the Bergdorf ’s shopper to have St. John in upswing mode. The Crystal Lourd, Eva Chow, Jamie to fully experience the world of streak continued Tuesday morning when Tisch and Lulu de Kwiatkowski and Oscar chief executive offi cer Alex Bolen Ralph Lauren.” the company sponsored The Hollywood for the affair. Bowles didn’t have a moment to sip Champagne — the ladies Lauren’s team will work close- Reporter’s Women in Entertainment Power kept him signing for two hours straight, and when he ran out of books in the ly with that of Bergdorf ’s to cre- 100 Breakfast (previously supported by back, the in-store displays had to be dismantled to meet the demand. At ate the design and execution of Ellen Tracy). Among the fashion plate least ODLR’s Miles Redd was on hand to rearrange the furniture. the new concept, slated to bow in guests were actresses Monet Mazur and fall 2008. Kelly Lynch, both of whom usually turn Blake Lively S AND J SPOTTED: “Gossip Girl” has been a “By creating a compelling mix heads in vintage and European designers, hit with New York viewers and Henri Bendel of product for Bergdorf Goodman but this time wore St. John resort, as well staffers have had good reason to do their in a one-of-a-kind environment, as Andrea Wong and Susanne Daniels, chief share for the Nielsen ratings. Scenes from we are offering our customers a executive offi cer and president of Lifetime the show have been shot in the Fifth Avenue Ralph Lauren retail experience Entertainment. Of course, honorees Jodie store and Henri Bendel has been mentioned unlike any other specialty store,” Foster and Sherry Lansing opted for their JOHN/GETTY IMAGES OF ST. PHOTO COURTESY in the story line several times. All the free Jim Gold, Bergdorf ’s president and usual Giorgio Armani, but it was a big day Monet Mazur publicity has left some TV watchers curious chief executive offi cer, added. for the Irvine, Calif.-based St. John, which also dressed Jaime Pressly for about what’s in store. After each episode, In October, Bergdorf Goodman her Emmy-winning night in September. the retailer’s Web site and consumer hotline held its first party for Ralph have seen upswings and many Henri Bendel Lauren to celebrate the Rizzoli YSL HONOR: Yves Saint Laurent was made a Grand Offi cer of the Legion visitors have asked if scenes from the book “Ralph Lauren,” with all its of Honor by French president Nicolas Sarkozy on Thursday. The show were really shot there. Even two of Fifth Avenue windows devoted to ceremony took place in the intimacy of Saint Laurent’s home with the show’s stars, Taylor Momsen, who plays the designer, who marked his 40th few guests, among them business partner Pierre Bergé and actress Jenny, and Blake Lively, who plays Serena, anniversary in business this year. Catherine Deneuve. have dropped by to shop. — Marc Karimzadeh 18 WWD, FRIDAY, DECEMBER 7, 2007 WWD.COM New York’s Biggest Apple Movado Net Leaps on Strong Margins By Jeanine Poggi Movado, we continue to make progress as By Sharon Edelson sell-through grows and we look forward to atchmaker Movado Group Inc. posted introducing new products specifi cally tai- NEW YORK — Apple, with sales of more than $2,000 a square foot, is bringing its Wa 21 percent jump in third-quarter lored to the Chinese consumer beginning retail formula to the Meatpacking District here. earnings, aided by growth in its internation- next year,” said Efraim Grinberg, presi- To hear Apple executives tell it, the recipe is simple: make products that people al business and strength in gross margins. dent and chief executive offi cer, on a con- want to buy. And despite a cloudy economic outlook, ference call with analysts. “Every Christmas has a different fl avor in terms of when [consumers] shop and the company raised its earnings guidance. “Third-quarter results were strong as what they buy,” Ron Johnson, senior vice president of retail, said Thursday during For the three months ended Oct. 31, net we positioned each of our brands in the a preview of the new store, which opens income rose to $26.5 million, or 97 cents marketplace with bold new products, as- today at 401 West 14th Street. “The com- a diluted share, from $21.9 million, or 82 pirational advertising campaigns, includ- mon denominator is that the most-want- cents, in the year-ago period as sales grew ing Movado’s milestone celebration of 60 ed gifts get bought. The ones that are un- 8.3 percent to $180.2 million from $166.3 years of modern design, and fully integrat- distinguished are getting hurt.” million. Total same-store sales at Movado ed marketing programs,” Grinberg said in Featuring iPods, iPhones and Macs, boutiques gained 8.8 percent. a statement. Apple stores were visited by more than For the nine-month period, earnings The primary driver of top-line growth 100 million people and did about $4.2 increased 14 percent to $41.2 million, or this year will come from new brands Hugo billion in sales in the fi scal year that $1.51 a diluted share, from $36.1 million, Boss, Juicy Couture and Lacoste, which ended in September, an increase of al- or $1.36, in last year’s period on sales are still in their infancy, said Richard J. most 24 percent from $3.4 billion the that grew 7.5 percent to $421 million from Cote, executive vice president and chief previous year. $390.6 million. operating offi cer, on the conference call. With 25,000 square feet of selling Movado’s international business in- The company said there’s a growing space, the West 14th Street store is creased 33 percent from last year and rep- sense of uncertainty surrounding the outlook Apple’s largest in New York City and the resented more than 40 percent of whole- of the economy and full-year results will de- second-biggest in the U.S. after a unit on sale revenue in the third quarter. These pend on the strength of the holiday season North Michigan Avenue in Chicago. The results refl ect the growing prominence of and retailer replenishment in January. other Apple stores in Manhattan are at Ebel and the global expansion of licensed Movado raised full-year guidance to 767 Fifth Avenue and 103 Prince Street brand business. the range of $1.74 to $1.78 a diluted share, in SoHo. “While China is still a small market for from a previous outlook of $1.72 a share. The newest store is Apple’s fi rst on three levels. A dramatic circular glass staircase leads from the main fl oor to the third level, which is entirely dedi- French Swimwear Brand Vilebrequin Sold cated to service. A 46-foot Genius Bar — the longest in Apple’s retail chain — is By Robert Murphy ternationally,” he explained. staffed with technical experts who can Vilebrequin, arguably France’s most assist 100 customers an hour. While the The dramatic glass staircase PARIS — Vilebrequin, the Saint Tropez- popular swimsuit brand, operates 67 stores Fifth Avenue unit is open 24 hours, the leads to the third fl oor. based swim trunks company, has and is sold in department and specialty Meatpacking District store changed hands. stores in 16 countries. will stay open every night Fashion Fund One, a private equity fund “The company is doing very well and until midnight. based in the Netherlands, on Thursday has nice double-digit increases every Johnson said the store said it acquired 100 percent of TRB year,” said Ouwendijk. “We want to put has the first Pro Labs, International SA, the Luxembourg-based more fuel in the tank.” where customers can holding company that owns worldwide Ouwendijk said more own stores would get free in-depth train- rights to the brand, from its owner, Pierre- be opened and an effort would be made to ing on applications such Alain Blum. Terms were not disclosed. increase Vilebrequin’s wholesale accounts. as Final Cut Pro for fi lm- It is Fashion Fund One’s second trans- He said Blum would remain a non-execu- makers. “Who lives in this action since a group of former executives tive member of the company’s board. lower part of Manhattan?” from the Mexx fast-fashion chain founded Vilebrequin was founded in the Johnson said. “Creatives. it last year. (Liz Claiborne Inc., which now Seventies in Saint-Tropez and quickly They need a place to take owns Mexx, is not involved in the fund.) earned cult status among men for its bright their craft to the next Last year, Fashion Fund One purchased patterned trucks that are a riff on classic level.” Inside the new Apple store. Secon Group, an Amsterdam company that surfi ng shorts. In the Nineties, the compa- In terms of service, a CENTENO TALAYA PHOTOS BY runs men’s and women’s brands, including ny expanded by launching men’s ready-to- concierge team will help Arrow and Anotherwoman, in Europe. wear and accessories. It also creates swim shoppers navigate the store. Appointments can be made with personal shoppers Hans Ouwendijk, managing director trunks for children. — a free service. of the fund, said other deals were being Ouwendijk said there were no plans to Apple’s ability to generate foot traffi c may benefi t neighbors such as Jeffrey New pursued. He declined to give details. But expand Vilebrequin into women’s wear. York, Alexander McQueen, Stella McCartney, Diane von Furstenberg and Hugo he said the fi rm was interested in build- Mexx founders Rattan Chada and Adu Boss, which is building a store next door to Apple. ing a portfolio of small to midsize fashion Advaney both are involved in Fashion In terms of the design, “We tried to really respect the neighborhood.…With the companies based in Europe. “We are inter- Fund One. Chada also owns a golf course Highline [railroad trestle being converted into a park] coming and a lot of develop- ested in smaller brands that we can help in the south of France and is developing a ment, we think we’re going to make the area better,” Johnson said. export to different parts of Europe and in- low-cost hotel concept.
REUNITED: One lot of it went to Vogue Living,” she said. “Some of it went ads, was shot late last month on month after House to Traveler, Men’s Vogue, Vanity Fair — mostly it’s photo location in Miami at the Green & Garden’s closing, shoots.” A spokesman for Vogue said Vogue Living’s spring Span mansion. She modeled MEMO PAD editor in chief issue had some “charming front of the book material” from fi ve looks from Southpole’s Dominique Browning House & Garden, and that Vogue itself would run a House collection, from comfortable logo and her former design director, Wendy Goodman, will work & Garden-intended story shot by François Hallard in its beachwear to sexy printed tops together again, this time on a story for Departures. The January issue. — Irin Carmon and denim skirts. article, which is slated for the March/April issue, is on “Being that we target a diverse Philippe Starck’s redesign of the lobby of the Hotel Meurice in OFF THE STREET: Rupert Murdoch’s takeover of The Wall Street consumer market and age group, Paris, in collaboration with his daughter, painter Ara Starck. Journal has sent its fi rst high-ranking offi cial for the hills, her look and attitude are a perfect Browning and Departures editor in chief Richard David and several more top departures are expected to follow. match for our brand,” said Janice Story fi rst met decades ago, as senior editors at Esquire. Dow Jones chief executive offi cer Richard Zannino resigned Welles, director of marketing for Until leaving New York magazine for House & Garden Thursday, after nearly two years in the position. Dow Jones the New York-based Southpole. in February, Goodman had been a contributing editor to did not offi cially name a replacement, but a report by the Southpole’s national ads are Departures, and she has now returned to both positions. WSJ on Thursday said Murdoch lieutenant Leslie Hinton is slated to hit select fashion and “My last day at H&G was Friday, and I was at New York expected to be named as Zannino’s successor. Hinton was lifestyle magazines and billboards K.D. Aubert behind the magazine on Monday,” said Goodman, who is on the road most recently executive chairman of News International, in March. — Julee Greenberg Kaplan scenes at the shoot. to promote her book on designer Tony Duquette. (It’s a post he has held since 1995, and had also been ceo already sold out its fi rst printing, she said.) Both will join of News America Publishing Inc., whose titles included EMAP BUYER?: According to a report on FT.com late Thursday, Story in Paris within the next few days. the New York Post. The WSJ also reported that Times of German publisher H. Bauer won the auction for Emap’s “It’s very interesting to get on the other side of the London editor Robert Thomson will become publisher of The consumer magazine and radio business, with a winning bid desk,” Browning said. She also continues to write for The Wall Street Journal, replacing Gordon Crovitz. Dow Jones of approximately 1.15 billion pounds, or over $2 billion. A New York Times Book Review and plans another book. But chief fi nancial offi cer Bill Plummer is also expected to leave spokeswoman for Bauer in the U.S. said the company had no she won’t exclusively be writing about home design: “I feel his position once the sale is fi nalized next week. comment and Emap, publisher of magazines including Grazia like I had the best job in design magazines — I loved my — Stephanie D. Smith and Heat, did not comment by press time. Past bidders for the job so much — but I could not go and do this somewhere consumer magazine division are said to have included Hearst else. I defi nitely want to write about many other things SOUTHPOLE STYLE: Southpole has found its new face. The Corp.’s National Magazine Co., and private equity players including travel, stories that are going on around the city.” junior apparel brand just shot 29-year-old K.D. Aubert, an including Apollo, Providence, Exponent and Cinven. For the She said the content of the January issue of House & up-and-coming actress who can soon be seen alongside fi rst half ending Sept. 30, Emap’s total group revenue fell 26 Garden, guest edited by Murray Moss, probably wouldn’t see Woody Harrelson in “The Grand” in January and opposite percent to 408 million pounds, or $836 million, from 554 the light of day, but that the magazine’s inventory belongs Matthew McConaughey in next summer’s “Surfer Dude.” million pounds, or $1.14 billion, due mainly to the impact of to Condé Nast (which also owns WWD). “I believe that a Aubert, who will appear in Southpole’s spring-summer disposals and closures, including Emap France. — Amy Wicks WWD, FRIDAY, DECEMBER 7, 2007 19 WWD.COM/CLASSIFIEDS
OF THE TOP JOB WEEK CHILDREN’S APPAREL NETWORK Final Art/Production Assistant APPLY NOW ON FASHIONCAREERS.COM New York City
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